Gross domestic product (GDP) is equal to personal consumption expenditures:
a. Plus gross private domestic investment, minus government spending, and plus net exports
b. Plus gross private domestic investment, plus government spending, and plus net exports
c. Plus gross private domestic investment, plus government spending, and minus net exports
d. Minus gross private domestic investment, plus government spending, and plus net exports
b. Plus gross private domestic investment, plus government spending, and plus net exports
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The income effect means that at a high enough wage rate labor supply curve has a
A) positive slope because an increase in the wage rate increases income. B) positive slope because an increase in income increases the demand for leisure. C) negative slope because an increase in income increases the demand for leisure. D) negative slope because an increase in the wage rate increases hours worked to earn more income.
A labor intensive production process is one in which:
A. a lot of labor is hired relative to the total inputs needed to produce the good. B. highly skilled labor is needed to produce the good. C. a part of the production process must be done by labor and cannot be substituted. D. total costs will be minimized if labor is the primary factor of production used.
The GDP figures fail to count labor services and other household production. Once this omission is taken into account,
a. the income differences between the high and low income countries are small. b. the differences in living standards between the high and low income countries are small. c. the income differences between the high and low income countries are still huge. d. the life expectancy in the high and low income countries is approximately the same.
The quantity of goods and services that firms produce and sell at each price level is shown on the
a) aggregate-services curve. b) market-supply curve. c) aggregate-demand curve. d) aggregate-supply curve.