Which of the following is included in the computation of gross domestic product?
(a) Government transfer payments, such as unemployment benefits
(b) Purchases of used goods, such as used cars
(c) Child care tasks performed by househusbands
(d) Total value of business inventories
(e) Additions to business inventories
Ans: (e) Additions to business inventories
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Suppose the state legislature in your state imposes a state licensing fee of $100 per year to be paid by all firms that file state tax revenue reports. This new business tax:
A) increases marginal cost. B) decreases marginal cost. C) increases marginal revenue. D) decreases marginal revenue. E) none of the above
Immiserizing growth is most likely to occur when
A. the increase in population equals the increase in national income of a country. B. economic growth leads to a deterioration of a country's terms of trade. C. the import payments of a country decline relative to its export earnings D. the benefits of economic growth are not shared equally by all residents of the country.
Which of the following is true for a perfectly competitive agricultural market with economic profits?
A. Firms will exit until normal profits are zero. B. The profits will last indefinitely since there are barriers to entry. C. No entry or exit will occur based on economic profits. D. Firms will enter and existing firms will increase their production until economic profits are zero.
The U.S. dollar exchange rate, e, expressed as Japanese yen per U.S. dollar, will appreciate when:
A. U.S. consumers increase their preference for Japanese cars. B. real GDP in the U.S. decreases. C. the U.S. Federal Reserve eases monetary policy. D. real GDP in the U.S. increases.