18 Questions
According to the text, what is the purpose of establishing a public or quasi-public Capital Credit Reinsurance Corporation?
To insure banks, insurance companies, and other lenders who make loan financing to Employee Stock Ownership Plan (ESOP) Trusts and similar credit mechanisms
What amendment does the text suggest to the Federal Reserve Act?
Amend Section 13
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
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
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
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
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
The velocity of money (V) is defined as
The rate at which money is spent in the economy
According to binary economics, the productive power of modern technology can be fully harnessed by
Promoting widespread ownership of capital
Kelso's binary economic growth model aims to address inflation by
Promoting economic justice and reducing resource-wasting activities
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.
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.
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.
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.
According to the Quantity Theory of Money, which variable represents the total stock of money in circulation?
M
What does the variable V represent in the Quantity Theory of Money equation?
Velocity of money
Which variable represents the average price level in the Quantity Theory of Money equation?
P
What does the variable Q represent in the Quantity Theory of Money equation?
Number of income transactions
Test your knowledge of Say's Law and its relationship to Binary Economics with this quiz. Learn about the input/output logic of a market economy and the connection between market value and aggregate purchasing power.
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