Describe the three basic types of personal consumption expenditures
What will be an ideal response?
(1) Products that have expected lives of three years or more are durable goods. Examples of these goods would be cars and refrigerators. (2) Products that have an expected life of less than three years are non durable goods. Examples of these goods would be clothing and food. (3) Work done by others for a person would be considered services. Examples of service providers would be doctors, lawyers, insurance agents, and hair stylists.
You might also like to view...
Wally, Vijay, Sandra, and Consuela make up a software development team at Javasoft. The firm is considering implementing one of two incentive compensation schemes
In scheme A, each programmer receives an annual bonus if he or she meets all individual programming deadlines. In scheme B, members of the team share equally in a joint bonus if the team meets all of its product delivery deadlines. All four employees are equally talented but Wally is a slacker who does as little work as he can get away with. Which scheme might team members prefer? Which scheme will management prefer?
The idea that every Pareto efficient allocation is the competitive equilibrium for some initial allocation of resources is known as:
A. the first welfare theorem. B. the second welfare theorem. C. the third welfare theorem. D. the exchange efficiency condition.
Other things the same, if the price level falls, domestic interest rates
a. rise, so domestic residents will want to hold more foreign bonds. b. rise, so domestic residents will want to hold fewer foreign bonds. c. fall, so domestic residents will want to hold more foreign bonds. d. fall, so domestic residents will want to hold fewer foreign bonds.
Which of the following is always true after an economy reaches a balanced growth equilibrium?
A) the growth rate of output equals the rate of depreciation B) population growth is zero C) the growth rate of capital is equal to the growth rate of the effective work force D) the growth rate of capital is equal to the savings rate E) none of the above