The following provides data for an economy in a certain year. Consumption expenditures$50Imports$40Government purchases of goods and services$20Construction of new homes and apartments$30Sales of existing homes and apartments$40Exports$50Government payments to retirees$10Household purchases of durable goods$20Beginning-of-year inventory$10End-of-year inventory$20Business fixed investment$30Given the data, compute the value of GDP.
A. $140
B. $160
C. $130
D. $150
Answer: D
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Collective bargaining can:
A) makes it easier for workers outside a union to get jobs. B) increase profitability of firms. C) reduce wages. D) increase unemployment.
The Board of Governors of the Federal Reserve System is responsible for
a. approving changes in the discount rate. b. controlling monetary policy. c. administering discount lending. d. Both a and b e. All of the above
At the point where diminishing marginal returns set in, the slope of the total product curve is
a. positive and increasing b. positive and decreasing c. negative and increasing d. negative and decreasing e. constant
If at optimum output of 1,000 units, the firm is incurring average variable cost per unit of $3, average fixed cost per unit of $1.50, and selling its output at $7 per unit, total profit is
a. $7,000. b. $2,500. c. $1,500. d. $250.