Positive net exports are treated like domestic investment in the national income accounts because they are
A) always part of inventories.
B) fixed assets not intended for resale.
C) they represent future flows of real income.
D) not intended for resale.
B
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Refer to Figure 7-2. Marginal private benefit is represented by which curve?
A) D2 B) Supply C) D1 D) All of the above represent marginal private benefit.
The stock market boom of the 1920s occurred in part because the demand for stocks increased. The source of this demand increase originated from whom?
(a) Ordinary workers who experienced rising wages and now had incentive to invest in the stock market, thus driving up stock prices. (b) The people in the upper income strata; they received a high percentage of the increase in realized income during the 1920s and invested much of it in the stock market. (c) Farmers who, finding agriculture increasingly unprofitable, began investing in the stock market rather than in farm land and equipment. (d) Foreign investors who were optimistic about America's future and accordingly invested in American stocks.