Which of the following four elements contribute to GDP in the expenditure approach?
a. Consumption spending, private investment, government purchases, net exports
b. Consumption spending, business investment, government purchases, imports
c. Consumption of services, private investment, government consumption, exports
d. Consumption of goods, private investment, government investment, government consumption
e. Consumption of durable goods, private investment, government purchases, net exports
A
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When private benefits are less than social benefits, it means that:
A. positive externalities are present in the market. B. positive externalities are not present in the market. C. negative externalities are not present in the market. D. no externality of any kind is present in the market.
Either a price floor or a price ceiling above the equilibrium price would cause a surplus
a. True b. False Indicate whether the statement is true or false
The Invisible Hand Principle suggests that
a. market prices direct individuals to produce more goods. b. individuals pursuing their own interests detract from the economic well-being of society. c. there should be stronger governmental initiatives to ensure cooperation for the betterment of society. d. market forces tend to channel the actions of self-interested individuals into activities that promote the general betterment of society.
For the U.S. economy, money holdings are a
a. large part of household wealth, and so the interest-rate effect is large. b. large part of household wealth, and so the wealth effect is large. c. small part of household wealth, and so the interest-rate effect is small. d. small part of household wealth, and so the wealth effect is small.