An American soldier stationed in North Carolina receives a paycheck from the federal government for $300, which she uses to purchase a $100 MP3 player made in China by a Chinese firm and $200 for fruit and vegetables from a local farmers market. As a result, U.S. GDP increases by
a. $200.
b. $300.
c. $500.
d. $600.
a
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Most Social Security benefits go to people who are not poor
Indicate whether the statement is true or false
In common value auctions
a. Bidders do not know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item differs across bidders
A perfectly competitive industry in long-run equilibrium is described as efficient because firms
A. produce at the low point on their average cost curve. B. produce where marginal cost yields a profit. C. earn no more than the cost of capital. D. are not profitable.
The speculative demand for money
a. varies inversely with national income b. varies directly with national income c. involves holding money for unexpected problems d. varies directly with the transactions demand for money e. varies inversely with the interest rate