Induced expenditures are defined as that part of
A) autonomous expenditure that responds to changes in real GDP.
B) real GDP that does not respond to changes in aggregate expenditure.
C) aggregate expenditure that responds to changes in real GDP.
D) aggregate expenditure that does not respond to changes in real GDP.
E) autonomous expenditure that does not respond to changes in real GDP.
C
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When analyzing the housing market, the supply curve
a. will be upward sloping because the higher the price of a house the more that will exist b. will be horizontal to illustrate that the supply of housing is a stock variable c. will be downward sloping; that is what went wrong with the housing market d. will be vertical to illustrate that the supply of housing is a stock variable e. could be horizontal, vertical or upward sloping depending upon the housing market in question
Which of the following could be considered to be a secondary effect caused by making drugs such as cocaine illegal?
a. The higher prices that result from making them illegal results in more property theft by users to afford the drugs. b. The usage of police and law enforcement resources to enforce drug laws leads to lower enforcement (and thus a higher amount) of other crimes. c. Without the ability to use the legal system to enforce contracts, violence often results when one party to a drug deal does not live up to their end of the bargain, thus the amount of violence increases by making drugs illegal. d. All of the above would be considered secondary effects of making drugs illegal.
The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013 . The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?
a. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government purchases. b. The 2013 payment is included in 2013 GDP as government purchases, but the 2014 payment is not included in 2014 GDP. c. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government transfer payments. d. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is allocated to previous years' GDP according to the amount of work performed by the economist each year.
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
This game:
A. is not a prisoner's dilemma. B. has no Nash equilibrium. C. is a prisoner's dilemma. D. is an ultimatum bargaining game.