Suppose two countries have per capita real GDP of $20,000 in 2017. Country A has a growth rate of 4 percent and Country B has a growth rate of 5 percent. By 2020, the per capita real GDPs for the two countries, respectively, are (rounded)
A. $22,400 and $23,000.
B. $25,000 and $26,500.
C. $21,630 and $22,050.
D. $22,500 and $23,150.
Answer: D
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You save $10 on gas every week because you take the bus to school. You have class 5 days a week. What is your average benefit per day of taking the bus to school?
A. $0 B. $2 C. $5 D. $10
The differential taxation of inputs does not create an excess burden.
A. True B. False C. Uncertain
The production possibilities curve shows different combinations of goods that:
a. can be consumed by households. b. can be consumed by firms. c. can be produced with the available technology. d. are produced and consumed by firms. e. are bought and sold in the market.
Suppose the government spending multiplier is 1.5. This means that
A) a $1 decline in government spending will raise Real GDP by $1.50. B) a $1 rise in government spending will raise both total spending and Real GDP (assuming prices are constant) by $1.50. C) a $1 rise in government spending will raise investment spending by $1.50. D) a $1 rise in government spending will change interest rates by 1.50 times what it was before the $1 rise in government spending. E) none of the above