Identify the immediate effect of each of the following events on U.S. GDP and its components
a. James receives a Social Security check.
b. John buys an Italian sports car.
c. Henry buys domestically produced tools for his construction company.
a. Since this is a transfer payment, there is no change to GDP or to any of its components.
b. Consumption and imports will rise and cancel each other out so that there is no change in U.S. GDP.
c. This increases the investment component of GDP and so increases GDP.
You might also like to view...
When studying the market for resources, it is important to understand that:
a. resources are wanted not for themselves, but for what they produce. b. demand for resources is generally inelastic in nature. c. derived demand does not apply to the resource market. d. resource markets do not conform to the laws of supply and demand as other markets do. e. supply is much more important than demand in determining the price of a resource.
When the price of NBA tickets is $25 each, 30,000 tickets are sold. After the price rises to $30 each, 20,000 tickets are sold. At the original price, the demand for NBA ticket is:
A. elastic. B. perfectly elastic. C. inelastic. D. unit elastic.
In the United States, market shortages of human organs are the result of price ceilings.
Answer the following statement true (T) or false (F)
A table that shows the possible payoffs each firm earns from every combination of strategies by all firms is called
A) an earnings table. B) a payoff table. C) a payoff matrix. D) a strategic matrix.