U.S. GDP and U.S. GNP are related as follows:
a. GNP = GDP - Income earned by foreigners in the U.S. + Income earned by U.S. citizens abroad.
b. GNP = GDP + Income earned by foreigners in the U.S. - Income earned by U.S. citizens abroad.
c. GNP = GDP + Value of exported goods - Value of imported goods.
d. GNP = GDP - Value of exported goods + Value of imported goods.
A
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If the price elasticity of demand for a good is elastic, then consumers are relatively unresponsive with respect to the quantity purchased when the price changes
a. True b. False Indicate whether the statement is true or false
Exhibit 16-1 Income for two persons NameIncome Elaine$100,000 Daniel$ 40,000 In Exhibit 16-1, if the income tax system is proportional, then:
A. Elaine and Daniel will face the same tax rate and will have tax bills the same size. B. Elaine and Daniel will face the same tax rate but Elaine's tax bill will be larger. C. Elaine will face a higher tax rate and will have a larger tax bill than Daniel. D. Elaine will face a lower tax rate and will have a smaller tax bill than Daniel.
You observe that at your current production of lunch boxes, the average total cost of producing lunch boxes is $5 and the marginal cost of producing lunch boxes is $2. What should always happen if you increase lunch box production?
A. Marginal cost will rise. B. Marginal cost will fall. C. Average total cost will rise. D. Average total cost will fall.
The following table provides data for an economy in a certain year.Consumption expenditures50Imports40Government purchases of goods and services20Construction of new homes and apartments30Sales of existing homes and apartments40Exports50Government payments to retirees10Household purchases of durable goods20Beginning-of-year inventory10End-of-year inventory20Business fixed investment30Given the data in the table, compute the government purchases component of GDP.
A. 20 B. 30 C. 10 D. 40