In the expenditure approach to GDP, which of the following would be excluded from measurements of GDP?
A. Government payments for goods produced by foreign firms
B. Government payments for welfare
C. Government payments for goods produced by firms owned by state or local governments
D. All government payments are included in GDP.
Answer: B
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Assume that you invest $550 in a certificate of deposit that has an annual interest rate of 4.5 percent. According to the rule of 72, what will your investment be worth after 16 years?
a. $550 b. $3,960 c. $1,100 d. $797.5 e. $1,200
Answer the following statement(s) true (T) or false (F)
1. Chemical use is associated with a production externality. 2. In the presence of a negative consumption externality, the MSB lies below the MPB. 3. To internalize the consumption externality of pesticide use, a product charge can be implemented as a unit tax. 4. If a unit tax is used to internalize the consumption externality of chemical use, it achieves efficiency if it is set equal to the MSB at the efficient output level.
Suppose that the income elasticity of demand for frozen dinners is negative. Other things being equal, which of the following statements is INCORRECT?
A. Frozen dinners are an inferior good. B. The quantity demanded of frozen dinners increases as a consumer's income declines. C. There exists a negative relationship between income and the demand for frozen dinners. D. The share of income spent on frozen dinners must decrease as a consumer's income decreases.
The longest economic expansion on record lasted
A. almost five years. B. almost six years. C. nine years. D. ten years.