The one category of goods that are not sold but are, nevertheless, included in GDP is
a. inventories.
b. imports.
c. consumer services.
d. exports.
a
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Refer to the table above. If the income of the consumer is $24, the optimal choice contains:
A) 1 quart of juice and 1 quart of milk. B) 3 quarts of juice and 4 quarts of milk. C) 4 quarts of juice and 4 quarts of milk. D) 4 quarts of juice and 5 quarts of milk.
Consider this quote from an article in the Wall Street Journal: "The stock of educated workers isn't increasing fast enough to keep up with rising demand
Employers are paying the typical four-year college graduate [without graduate school] 75% more than they pay high-school grads. Twenty-five years ago, they were paying 40% more. Employers insist on ever better-educated, skilled workers. " Source: David Wessel, "Lack of Well-Educated Workers Has Lots of Roots, No Quick Fix," Wall Street Journal, April 19, 2007, A) The demand for high-school educated workers shifted to the left faster than the supply of college educated workers shifted to the right. B) The supply of high-school educated workers shifted to the right faster than the demand for college educated workers shifted to the right. C) The demand for college educated workers shifted to the right faster than the supply of college educated workers shifted to the right. D) The demand for college educated workers shifted to the right while the supply of college educated workers shifted to the left.
Which of the following is a problem with discretionary fiscal policy as an economic stabilization tool?
a. Discretionary changes in fiscal policy can be easily anticipated by private decision makers. b. It is difficult to properly time discretionary changes in fiscal policy. c. Discretionary fiscal policy is only effective during a recession. d. Discretionary fiscal policy is only effective during an economic boom.
According to supply-side economics, when operating in the upper portion of the Laffer curve, tax cuts result in
A. interest rate increases. B. productivity decreases. C. income decreases. D. tax revenue increases.