Which of the following actions would increase the consumption spending component of the gross domestic product (GDP)?
a. Ann cooking dinner for Tim instead of going out
b. Ann and Tim buying a used microwave oven
c. Ann and Tim buying vegetables to prepare soup at home
d. Tim buying Ann a dress
e. Tim and Ann painting the garage themselves
d
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"My son is a smart entrepreneur. Rather than borrow money from others, he used his own savings to start his music business, and thereby avoided paying interest on loans." An economist would respond by saying
A) "both you and your son are complete idiots." B) "it's always good to avoid borrowing and paying interest." C) "nobody can avoid paying interest, not even your clever son." D) "your son might have avoided paying interest, but he also avoided earning interest."
Other things equal, the supply of labor will be higher to a job that
a. offers less prestige b. offers fewer nonmonetary rewards c. provides little on-the-job training d. requires advanced education or skills e. provides a climate-controlled work environment
The labor productivity speed-up in the United States could be explained by a delayed
a. educational benefit. b. technology benefit. c. military spending benefit. d. baby boom benefit.
A minimum wage law (that sets the minimum wage above the equilibrium wage) can be expected to
A) clear the market for unskilled workers. B) increase the number of unskilled workers employed. C) increase the number of firms in those industries where the law is effective. D) reduce the number of unskilled workers employed and/or reduce the number of hours worked by unskilled workers. E) all of the above