Exhibit 5-8 GDP data (billions of dollars)
Personal consumption expenditures$850
Interest90
Corporate profits150
Government spending400
Depreciation100
Rental income70
Gross private domestic investment120
Compensation of employees830
Exports120
Imports70
Indirect business taxes80
Proprietors' income120
Personal income taxes110
Social Security taxes50
Transfer payments160
In Exhibit 5-8, disposable personal income (PI) is:
A. $2,180 billion.
B. $1,200 billion.
C. $2,210 billion.
D. $1,180 billion.
Answer: D
You might also like to view...
Alice has $10 to spend on wine and cheese. If wine is $2.50 a glass and cheese $2, draw the corresponding budget line. Then draw three indifference curves, one showing the amount of wine and cheese Alice would choose, one showing less preferred combinations of wine and cheese, and the last showing preferred but unaffordable combinations. ?
What will be an ideal response?
Parties who have bought a futures contract and thereby agreed to ________ (take delivery of) the bonds are said to have taken a ________ position
A) sell; short B) buy; short C) sell; long D) buy; long
Deadweight loss measures the decrease in total surplus that results from a tariff or quota
a. True b. False Indicate whether the statement is true or false
If government regulators make the natural monopolist set price equal to marginal cost
A) the natural monopolist will make zero economic profits. B) the natural monopolist will make normal profits. C) the natural monopolist will make losses and go out of business. D) the natural monopolist will make positive economic profits larger than if it wasn't regulated at all.