Which one of the following transactions in a particular year is included in gross domestic product for that year?
A) Social Security payments to retirees
B) The government pays a computer services company that assisted in the delivery of Social Security payments to retirees.
C) A car is produced in the previous year and remains in inventory for the entire year under consideration.
D) A stay-at-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform.
B
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In the United States during the Vietnam War era, as military spending increased
A) unemployment dropped to very low levels. B) frictional unemployment dropped, but cyclical unemployment increased. C) both frictional and cyclical unemployment increased. D) overall unemployment rates did not change.
Refer to Table 19-7. Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges. Calculate nominal GDP for this simple economy
What will be an ideal response?
If a good is offered to you free of charge, then you
a. never stop consuming it b. stop consuming it when its marginal utility begins to fall c. stop consuming it when its marginal utility begins to increase d. stop consuming it when its marginal utility equals 0 e. stop consuming it when its total utility equals 0
Suppose we are studying the effects of expanded income supplement for senior citizens on their health. We use the two-group, to-period differences-in-differences setup, with working-age citizens as our control group.Which of the following is a key assumption for the validity of this identification strategy?
A. In the absence of the intervention, theaverage health outcomes would be the same for both groups. B. Before the intervention, the average health outcomes were the same for both groups. C. After the intervention, the average health trends would be the same for both groups. D. In the absence of the intervention, theaverage health trends would be the same for both groups.