If Bountiful Orchard grows $100,000 worth of peaches, sells $50,000 worth of peaches to consumers and uses the rest to make jam that is sold to consumers for $100,000, Bountiful Orchard's contribution to GDP is:
A. $50,000.
B. $100,000.
C. $200,000.
D. $150,000.
Answer: D
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The current surplus of the Social Security system is expected to become a deficit sometime around 2018 because the
a. payroll tax rate is scheduled to decline at that time. b. number of workers relative to the number of Social Security recipients will decline as the baby boom generation moves into the retirement phase of life. c. stock market is not expected to perform nearly as well during the next two decades as was the case during the 1980s and 1990s. d. growth rate of the U.S. economy is expected to slow during the next two decades.
Horizontal equity is a difficult concept to implement because
A. it is difficult to determine how unequally unequals should be treated. B. it is difficult to measure ability to pay. C. it is difficult to determine which people are equally situated. D. people object to the use of absolute tax liability instead of percentage of income.
Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in technology in the market for anything?
A. Figure 1 B. Figure 2 C. Figure 3 D. Figure 4
Refer to the graph shown.
Assuming a consumer has $5 to spend, if a soda costs $0.50 and a chocolate bar costs $0.50, the consumer will optimally choose to consume:
A. at point B. B. 10 cans of soda and 0 chocolate bars. C. at point A. D. 0 cans of soda and 10 chocolate bars.