If a man marries his hired housekeeper, the value of GDP
a. rises
b. falls
c. is unchanged
d. rises, but the value of national income falls
e. falls, but the value of national income rises
B
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Suppose the quantity of sodas and the quantity of popcorn are on an indifference curve/budget line diagram. An increase in income shifts the budget line ________ and, if popcorn is a normal good, shifts the demand curve for popcorn ________
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The yield on bond A is approximately
A. 2.9 percent. B. 0.03 percent. C. 2.5 percent. D. 0.02 percent.
Which of the following demonstrates opportunity cost?
A. With a new strain of wheat, the wheat crop of Canada grows by 20% with no change in the productive resources devoted to wheat farming. B. A tax cut increases people's purchases of consumer goods and decreases state expenditures on education. C. The ravages of World War II reduced Japan's ability to produce goods. D. Flora gets a 10% raise and increases her expenditures on movies.
Suppose that one could determine the amount of income that is pure economic rent. If a law were passed that taxed 50 percent of that rent, what would happen to the amount of work that people perform?
A. It would increase as people seek higher income. B. It would be unchanged. C. It would decrease as people suffer a loss of income. D. It would increase for some and decrease for others.