Which of the following would be considered a component of government purchases?
a. Both d and e
b. All of the following
c. Welfare payments
d. Police salaries
e. Social security payments
D
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A ten-year-old goes to a baseball convention this week and purchases a newly-autographed Barry Bonds baseball for $100. How would this affect GDP?
A) It wouldn't. B) GDP would increase by $10—reflecting the market price of the ball itself. C) GDP would increase by $90—reflecting the market price of Bonds' autograph. D) GDP would increase by $100—reflecting the market price of the autographed ball. E) GDP would have increased were the autographed ball purchased by somebody 16 years or older.
If the world price is below the domestic "no-trade" equilibrium price, then with international trade:
a. the domestic shortage can be eliminated by rationing. b. the domestic surplus can be consumed at home. c. the domestic surplus can be exported to the rest of the world. d. the domestic quantity demanded is equal to that supplied by the world. e. the domestic shortage can be met by foreign imports.
The origin of classical economics was based on the book written by
A. John Maynard Keynes. B. Milton Friedman. C. Karl Marx. D. Adam Smith.
The cross-price elasticity of demand is the percentage change in price divided by the percentage change in the price of another good.
Answer the following statement true (T) or false (F)