All are examples of government purchases that would be included in GDP except:
A. pencils for the employees of the FBI to use.
B. the salaries of those in the military working in California.
C. replacement calculators for the Congressional Budget Office.
D. salaries paid by government to foreign contractors in Iraq.
D. salaries paid by government to foreign contractors in Iraq.
You might also like to view...
For the coordination failure model to work, it must be the case that the aggregate labor demand curve must be
A) upward sloping and steeper than the labor supply curve. B) upward sloping and flatter than the labor supply curve. C) downward sloping and steeper than the labor supply curve. D) downward sloping and flatter than the labor supply curve.
To protect economic profits
A) a firm should try to acquire a barrier to entry. B) a firm should limit substitutes. C) a firm should have a patent if possible. D) all of these choices.
Say a public good is provided to two consumers: John and Jill. John's willingness to pay for the good is P = 10 - Q, and Jill's is P = 20 - 2Q. The marginal cost to provide the good are 2Q. Assume the government must pay for providing this good by taxing Jill and John equally to raise the necessary revenue. If the total costs of providing the public good are $25, then
A. both Jill and John would be willing to vote to approve of providing the good. B. only John would be willing to vote to approve of providing the good. C. only Jill would be willing to vote to approve of providing the good. D. neither Jill nor John would be willing to vote to approve of providing the good.
Refer to the supply and demand graph below. In the graph, line S is the current supply of this product, while line S1 is the optimal supply from the society's perspective. This figure suggests that there is (are):
A. External benefits from the production of this product
B. External costs in the production of this product
C. Currently an underallocation of resources toward producing this good
D. Positive externalities from producing the good