In a private closed economy, there will be an unplanned increase in inventories when:
A. Aggregate expenditures exceed GDP
B. Aggregate expenditures exceed (C + I g )
C. (C + I g ) exceeds aggregate expenditures
D. GDP exceeds aggregate expenditures
D. GDP exceeds aggregate expenditures
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The concept of net domestic investment refers to ________.
A. the difference between the market value and book value of outstanding capital stock B. the amount of machinery and equipment used up in producing the GDP in a specific year C. gross domestic investment less net exports D. total investment less the amount of investment goods used up in producing the year's output
Which of the following would not be included in the measurement of GDP?
A) a bill from a car mechanic B) wages of a card dealer working in a Las Vegas casino C) commissions of a stockbroker D) the increased value of shares of stock E) c and d
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 If Island Bikes charges a single price to all of its customers, then what price will it charge?
A. $4 B. $12 C. $8 D. $16
Linda earned an income of $3,000 per month which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging and other expenses. So far, she has managed to save $20,000. What is her disposable income after the increase?
What will be an ideal response?