Suppose that aggregate consumption is $1,000,000, aggregate investment is $200,000, government spending is $300,000, the value of exports is $100,000, and the value of imports is $200,000. What is the value of Gross Domestic Product (GDP)?
What will be an ideal response?
$1,400,000
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If a perfectly competitive wheat farmer is maximizing its profit and then increases its output, the farmer's
A) total revenue increases, but total cost rises by more so that the farmer's total profit decreases. B) total revenue decreases and total cost increases, both thereby decreasing the farmer's total profit. C) total revenue does not change but total cost increases, thereby decreasing the farmer's total profit. D) marginal revenue increases, but so does marginal cost, so that the farmer's total profit increases. E) total revenue and total cost both rise, but the effect on the farmer's total profit is uncertain.
The structural deficit is
A. The deficit that would exist if the economy were at full employment. B. Equivalent to the GDP gap. C. Computed on the basis of the current value of automatic stabilizers. D. Determined by the president of the United States.
What are the main differences between adverse selection and moral hazard in the insurance market?
What will be an ideal response?
In the determination of economic growth, political freedom
A. is more important than economic freedom. B. is inversely related to economic freedom. C. is equally as important as economic freedom. D. appears to be less important than economic freedom.