Capital goods are treated as ________ goods and, therefore, are ________ GDP.
A. intermediate; excluded from
B. intermediate; included in
C. final; excluded from
D. final; included in
Answer: D
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An efficient allocation of resources occurs when we
A) produce the goods and services that people need. B) cannot produce more of a good or service without giving up some other good or service that we value more highly. C) produce the goods and services that people want. D) cannot produce more of a good or service without giving up some other good or service that we need.
The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomic topic
Indicate whether the statement is true or false
Suppose the U.S. Drug Enforcement Agency steps up its efforts to control the illegal importation of cocaine into the United States. What is the likely effect on the market for illegal drugs in the United States?
a. The price of cocaine and the quantity imported will both increase. b. The price of cocaine is likely increase and the quantity entering the country decrease. c. The price of marijuana, a cocaine substitute grown domestically, will fall. d. The policy will have the least impact on those individuals whose demand for drugs is elastic. e. Demand for drugs is highly inelastic and these policies have little or no effect on consumption.
If the Federal Reserve sells a $2,000 bond to a bond dealer who pays with a check written on an account at Second National Bank, what changes will occur on the bank's balance sheet after the check clears?
a. Reserves and total assets will increase by $2,000 . demand deposits and total liabilities will decrease by $2,000. b. Reserves, demand deposits, total assets, and total liabilities will all increase by $2,000. c. Reserves and total assets will decrease by $2,000 . demand deposits and total liabilities will increase by $2,000. d. Reserves, demand deposits, total assets, and total liabilities will all decrease by $2,000. e. Reserves will decrease by $2,000 . demand deposits, total assets, and total liabilities will all increase by $2,000.