In Marx's ideal communist society, the state:

In Marx's ideal communist society, the state:
 a. actively promotes income incentives. b. follows the doctrine of laissez faire.
  c. owns resources and conducts planning. d. does not exist.

QUESTION 2

Given full-employment output = 2,800, equilibrium output = 2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of national output?
 a. 300 decrease in taxes.
  b. 75 increase in government spending.
  c. 75 decrease in taxes.
  d. 300 increase in government spending.
  e. 75 decrease in government spending.

QUESTION 3

The Federal Reserve System is owned by:
 a. federal government agencies such as the Treasury.
  b. the Congress of the United States.
  c. the banks that are members of the Federal Reserve System.
  d. anyone who buys stock over the counter.
  e. people who have deposits in member banks.

QUESTION 4

Karl Marx published:
 a. Das Kapital. b. General Theory of Communism.
  c. The Wealth of Nations. d. Capitalist Manifesto.

QUESTION 5

Assume that an economy's real GDP multiplier is 2 and that this economy is in equilibrium at 500 billion. If the government wants to move this economy to full-employment at 600 billion, while maintaining a balanced budget, it must choose which of the following options?
 a. Increase government spending and taxes by 100 billion
  b. Decrease government spending and taxes by 100 billion
  c. Increase government spending and taxes by 200 billion
  d. Decrease government spending and taxes by 200 billion

QUESTION 6

The Federal Reserve System is divided into:
 a. 2 districts.
  b. 12 districts.
  c. 26 districts.
  d. 50 districts.
  e. 1 district.

QUESTION 7

Karl Marx was a(n):
 a. 19th century German philosopher. b. 18th century Russian economist.
  c. 14th century Polish banker. d. 19th century Russian journalist.

QUESTION 8

Assume that an economy's real GDP multiplier is 4 . If this economy is in equilibrium at 2,000 billion, then which one of the following actions will bring it to a full employment equilibrium of 1,500 billion?
 a. 500 billion spending cut.
  b. 500 billion spending increase.
  c. 125 billion spending cut.
  d. 125 billion spending increase.
  e. 2,000 billion spending cut.