Question

QUESTION 13

1. The Government can alter aggregate demand by:

   		Purchasing more or fewer goods and services
   		Raising or lowering taxes
   		Changing the level of income transfers
   		None of the above

4 points   

QUESTION 14

1. A bond is a certificate acknowledging a debt and the amount of interest to be paid over a period of time, until maturity of the bond, when repayment of the face value of the bond is due.

   True

   False

4 points   

QUESTION 15

1. Scarcity is at the core of the study of economics, whereas factors of production (land, labor, capital, entrepreneurship are scarce in relation to our desires for goods and services.

   True

   False

Answer 1

a) Option A,b and c all are correct. to change the aggregate demand the government can increase or decrease the tax, the expenditure or transfer payments.

b) "True"

bond is a kind of debt on the government who pays interest on it until they pay the final amount or the face value.

c) "True"

Economics is the study of resource at the time of scarcity.