Question

8. To acquire human capital a person could:
a. save to buy a printing press
b. purchase a printing press rather than use his or her money onconsumption
c. learn to use a printing press d. sell the books that theprinting press produces e. buy the books that the printing pressproduces


9. Which of the following is considered to be part of the moneysupply? Circle all correct answers—there may be more thanone.
a. currency
b. Treasury bills
c. diamonds
d. Coca-Cola stock
e. checking account deposits
f. 10% off coupons good at the bookstore

13. Which of the following transactions will be included in GDP inthe United States (circle all correct answers; there may be morethan one)

a. Coca-Cola builds a new bottling plant in the UnitedStates.
b. Delta Airlines sells one of its existing airplanes to KoreanAir.
c. Ms. Moneybags buys an existing share of Disney stock.
d. A California winery produces a bottle of Chardonnay and sells itto a customer in Montreal, Canada.
e. An American buys a bottle of French perfume in Tulsa.
f. A book publisher produces too many copies of a new book; thebooks don’t sell this year, so the publisher adds the surplus booksto inventories.


15. Suppose that the economy is in long-run macroeconomicequilibrium and aggregate demand increases due to increasedoptimism about future economic growth. As the economy moves toshort-run macroeconomic equilibrium, there is:
a. a recessionary gap with high inflation
b. a recessionary gap with low unemployment
c. a recessionary gap with low inflation
d. an inflationary gap with high unemployment
e. an inflationary gap with low unemployment

20. A laptop computer purchased by a private individual isconsidered by economists to be:
a. consumption spending
b. investment spending
c. government spending on goods and services
d. a transfer payment
e. private saving
f. investment in human capital