Which of the following expenditures would increase the investment component of U.S. GDP?

A. You purchase a new car.
B. You purchase 1,000 shares of stock.
C. You pay a commission to your stock broker for selling some stocks that you owned.
D. You purchase a new house.


Answer: D

Economics

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The banking system receives a new cash deposit of $250,000 . Total deposits eventually rise by $1 million. The value of the reserve ratio is

a. 25. b. 4. c. 0.50. d. 0.25. e. 0.20.

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In which year did the United States account for half the world's manufacturing output?

A. 1925 B. 1945 C. 1965 D. 1985

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What is the law of diminishing returns? Give a descriptive example

Please provide the best answer for the statement.

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Allison's Auto Art is a company that applies pinstripes to vehicles. Allison's cost for a basic 1-color pinstriping job is $35, and she charges $95 for this service. For a total price of $175, Allison will apply a fancier 3-color pinstripe application to

an automobile, a service that adds an additional $40 to the total cost of the package. Should Allison continue to offer the 3-color pinstripe application? A) Yes, she still makes a profit by selling the 3-color application. B) yes, but only if she lowers the price of the 1-color application C) No, her marginal benefit is less than her marginal cost. D) More information is needed for Allison to make this decision.

Economics