In a small economy, consumption spending is $6,000, government purchases are $1,200, gross investment is $1,500, exports are $2,000, and imports are $1,000. What is gross domestic product?
A) $9,700
B) $9,800
C) $10,800
D) $11,700
Answer: A
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, the net gain of producer surplus equals area(s)
A. B + C. B. D. C. A + B + C + D. D. B + C + D.
If spending increased by $200, and the GDP increased $1,000 as a result, the MPC must be:
A. 0.80 B. 0.75 C. 4 D. 5
Firms that expend resources for lobbying that could have been used for productive services are engaging in rent-seeking behavior.
Answer the following statement true (T) or false (F)
Determining whether a good is a merit good is:
A. best done using economic theory. B. an objective exercise. C. a subjective exercise. D. best left to economists.