Economics

It is a process of building up capital stock, or the expenditure which determines the income and production in the economy.

• Income

• Consumption

• Investments

• Savings

• Capital

Fixed investments are said to be:

• Investments that provide fixed periodic sources of income over a certain period of time

• Investments that are suitable for risk-tolerant individuals

• Investments where returns are not fully guaranteed and money or resources invested may also not be fully recovered

• All of the above

• None of the above

It represents the cost of using or borrowing money

• Income

• Interest rate

• Loanable funds

• Production

• Consumer

The amount of money lent by a lender to a borrower, for which the borrower would pay an interest rate to the lender for the use of that fund

• Income

• Interest rate

• Loanable funds

• Production

• Consumer

Future ________ reflect the plans to change production capacity

• Level of economic activity

• Technological change

• Public policy

• Expectations

• None of the above

This form of granting incentives to firms can significantly affect the demand for capital, thereby increasing investments

• Level of economic activity

• Technological change

• Public policy

• Expectations

• None of the above

The price paid for the use of land and other natural resources or factors of production that is in fixed supply is called __________

• Level of economic activity

• Technological change

• Wages

• Expectations

• Rent

This point of equilibrium is called the _______, where firms may hire an employee at the existing wage rate and people who would like to have that wage rate would be able to do so.

• Market clearing

• Labor supply

• Labor demand

• Wages

It is known as the lifeblood of the government

• Direct taxes

• Taxes

• Indirect taxes

• Proportional taxes

• Regressive taxes

Progressive taxes are:

• Taxes that place an equal burden on the rich, the middle class, and the poor

• Taxes that fall more heavily on the poor than on the rich

• Taxes levied by government on the income and wealth received by households and businesses to raise revenue and to act as an instrument of fiscal policy

• Taxes levied by government on goods and services to raise revenue and to act as an instrument of fiscal policy

• Taxes that place a greater burden on those best able to pay and little or no burden on the poor