Select the correct answer for each of the following

1. If the gross domestic product of a country is significantly higher in one year than in another, what might account for the difference

a. population growth

b. greater available resources and technological advances

c. inflation

d. all of these

2. The Lorenz Curve for the United States indicates that the richest 20 percent of households have what percentage of the nation's income

a. 20 percent

b. 3.8 percent

c. 90 percent

d. 46.8 percent

3. The economic condition most likely to be caused by a war affecting oil production in the Mid East would be

a. demand-pull inflation

b. cost-push inflation

c. deflation

d. cost of living inflation

4. The Federal Reserve System

a. lends money to banks

b. functions as the bank for the government

c. aids the check-clearing process

d. all of these

What portion of its revenues does the United States spend on defense

a. about 10 percent

b. about 20 percent

c. about 40 percent

d. about 50 percent