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
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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.
In which year did the United States account for half the world's manufacturing output?
A. 1925 B. 1945 C. 1965 D. 1985
What is the law of diminishing returns? Give a descriptive example
Please provide the best answer for the statement.
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.