Say's Law and Binary Economics Quiz

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According to the text, what is the purpose of establishing a public or quasi-public Capital Credit Reinsurance Corporation?

To increase the money supply

To insure banks, insurance companies, and other lenders who make loan financing to Employee Stock Ownership Plan (ESOP) Trusts and similar credit mechanisms (correct)

To set national lending standards and insurance criteria for Capital Homesteading loans

To insure mortgages on home financing

What amendment does the text suggest to the Federal Reserve Act?

Amend Section 10

Amend Section 7

Amend Section 5

Amend Section 13 (correct)

According to the text, what is the role of a counterpart of Fannie Mae and Freddie Mac?

To set national lending standards and insurance criteria for Capital Homesteading loans (correct)

To insure mortgages on home financing

To increase the money supply

To insure banks, insurance companies, and other lenders who make loan financing to Employee Stock Ownership Plan (ESOP) Trusts and similar credit mechanisms

According to the text, Kelso's program aims to remove structural barriers to broader capital ownership and revive competitive market forces. Which of the following is NOT a part of this program?

Modifying government planning Signup and view all the answers

According to the text, Kelso's program would adopt incentives for accelerating capital formation. What is the equation that represents the relationship between money supply, velocity of money, price level, and quantity of goods and services produced?

M x V = P x Q Signup and view all the answers

According to the text, Kelso's program aims to expand the base of capital ownership and build capital incomes incrementally and in reasonable quantities into the 95% of individuals and families. What are the components of the equation NNP = C + I + G?

National Net Product = Consumption + Investment + Government spending Signup and view all the answers

According to the quantity theory of money, the equation M x V = P x Q represents the relationship between

Price level and quantity of goods and services Signup and view all the answers

The velocity of money (V) is defined as

The rate at which money is spent in the economy Signup and view all the answers

According to binary economics, the productive power of modern technology can be fully harnessed by

Promoting widespread ownership of capital Signup and view all the answers

Kelso's binary economic growth model aims to address inflation by

Promoting economic justice and reducing resource-wasting activities Signup and view all the answers

According to Say's Law of Markets, what is the relationship between the market value of goods and services produced and the aggregate purchasing power created?

The market value of goods and services produced is equal to the aggregate purchasing power. Signup and view all the answers

Under binary economics, how many ways can an individual derive an income from a productive activity?

Two ways: wages derived from labor contribution and through ownership of productive assets. Signup and view all the answers

What determines the value of labor or capital contributed to the production process under binary economics?

The value is determined by evaluating all human inputs and all nonhuman or capital inputs through open and competitive markets. Signup and view all the answers

What is the essence of Say's Law of Markets at the national level?

The summation of costs must always equal the summation of all labor and capital incomes. Signup and view all the answers

According to the Quantity Theory of Money, which variable represents the total stock of money in circulation?

M Signup and view all the answers

What does the variable V represent in the Quantity Theory of Money equation?

Velocity of money Signup and view all the answers

Which variable represents the average price level in the Quantity Theory of Money equation?

P Signup and view all the answers

What does the variable Q represent in the Quantity Theory of Money equation?

Number of income transactions Signup and view all the answers

Say's Law and Binary Economics Quiz

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