Which of the following would be classified as consumption spending?
a. A family's purchase of a new home
b. A family's purchase of a used car
c. A family's payment for a child's hospitalization
d. A family's purchase of Microsoft stock
e. A family's purchase of a swing set for their home day-care business
C
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Rita cooked a meal for her family which is worth $100 in the nearest eatery. What will be the impact of this activity on the calculation of GDP? Explain your answer
What will be an ideal response?
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment. Pat's accounting profit is ________, and Pat's economic profit is ________.
A. $50,000; $15,000 B. $15,000; -$1,000 C. $34,000; $15,000 D. $34,000; -$1,000
Which would make an individual firm's demand curve less elastic?
A. A reduction in the price of the firm's product. B. The purchase of more efficient machinery. C. A reduction in advertising expenditures by the firm. D. Increased brand loyalty toward the firm's product.
ATMs and human bank tellers:
A. are substitute resources. B. are capital goods. C. have both declined in number because of bank mergers. D. are complementary resources.