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Question
Which of the following is included in GDP?
A) A newly laid-off worker receives his $400 unemployment compensation check from the state government.
B) A college senior receives a $1,000 graduation gift from a grandparent.
C) You buy a $12 snow shovel to have on hand for the next snow storm.
D) You purchase $300 worth of clothes from a thrift shop selling second -hand clothing.
Answer
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Related questions
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The purpose of an effluent fee imposed on a firm isA) to increase output of its product by increasing the resources allocated to production.B) to increase output of its product by reducing the resources allocated to production. C) to reduce output by increasing production costs thereby reducing resources used. D) none of the above
Q:
Refer to the above figure. At a price of $2 per gallon, there isA) a surplus of 20,000 gallons per month. B) a shortage of 40,000 gallons per month.C) a shortage of 80,000 gallons per month. D) a shortage of 60,000 gallons per month.
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How would you illustrate economic growth with the production possibilities curve? Explain.
Q:
What happens to the production possibilities curve if technology enables an economy to produce more of every good? Is there any tradeoff involved in this change?
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Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expectA) the quantity demanded is Q 2.B) a surplus will occur.C) price to decline until an equilibrium is achieved at P0.D) consumers to bid against each other for goods and force the price even higher.
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Q:
Which of the following is NOT an example of investment in human capital?
A) A medical studentʹs internship
B) The purchase of a personal computer for playing games
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D) Johnny learns how to read
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Economic growth can be pictured in a production possibilities curve diagram byA) shifting the production possibilities curve in. B) shifting the production possibilities curve out.C) making the production possibilities curve straighter.D) moving from a point inside the production possibilities curve to a point on the curve.
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The exchange rate for a foreign currency that is determined by supply and demand isA) a fixed exchange rate. B) a controlled exchange rate. C) a constrained exchange rate. D) a flexible exchange rate.
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Markets tend to underallocate resources to the production of a good whenA) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
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Markets tend to overallocate resources to the production of a good whenA) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
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Q:
Which of the following statements is FALSE?
A) The rationing function of prices is not allowed to freely operate when the government imposes price controls.
B) Price controls may take the form of price ceilings or price floors.
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D) Rent controls are examples of price floors.
Q:
The discovery of new natural resources will causeA) the economy to move closer to the production possibilities curve. B) the production possibilities curve to shift up and to the right.C) an upward movement along the curve. D) the curve to shift back and to the left.
Q:
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Q:
Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will causeA) an increase in the demand for coffee. B) a decrease in the demand for coffee.C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.
Q:
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Q:
Discuss the relationship between world trade and world Gross Domestic Product (GDP) since the early 1950s.
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