Monica grows coconuts and catches fish last year she

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26. Monica grows coconuts and catches fish. Last year she harvested 1500 coconuts and 600 fish. She values one fish as having a worth of three coconuts. She gave Rachel 300 coconuts and 100 fish for helping her to harvest coconuts and catch fish, all of which were consumed by Rachel. Monica consumed the remaining fish and coconuts. In terms of fish, total consumption by both Monica and Rachel would equal (a) 700 fish. (b) 900 fish. (c) 1100 fish. (d) 2700 fish. Answer: C Level of difficulty: 2 Section: 2.2
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20 Abel/Bernanke • Macroeconomics, Fifth Edition 27. Private disposable income equals 28. The value of a household’s assets minus the value of its liabilities is called 29. If a local government collects taxes of $500,000, has $350,000 of government consumption expenditures, makes transfer payments of $100,000, and has no interest payments or investment, its budget would 30. The government budget surplus equals (a) government purchases plus transfers. (b) net government receipts minus government purchases. (c) government purchases minus net receipts. (d) government purchases minus transfers. Answer: B Level of difficulty: 1 Section: 2.3 31. National saving equals private saving plus government saving, which in turn equals
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Chapter 2 The Measurement and Structure of the National Economy 21 32. The uses-of-saving identity says that an economy’s private saving is used for 33. The uses-of-saving identity shows that if the government budget deficit rises, then one of the following must happen.
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  • Spring '11
  • carlitos
  • Inflation, gross domestic product, Fifth Edition, Difficulty

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