If you earn additional $500 in disposable income one week for painting your neighbor's house
A. the total of your consumption and saving will increase by less than $500.
B. the total of your consumption and saving will increase by $500.
C. your consumption will increase by more than $500, even if your MPS is 0.1.
D. the total of your consumption and saving will increase by more than $500.
Answer: B
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The value added method to measure GDP does not avoid double counting
a. True b. False Indicate whether the statement is true or false
Which of the following is a difference between absolute advantage and comparative advantage?
a. Absolute advantage occurs when a country has a lower production cost than its trading partner, while comparative advantage occurs when a country produces a good at a lower opportunity cost than its trading partners. b. Absolute advantage occurs when a country has a higher production cost than its trading partner, while comparative advantage occurs when a country produces a good at a higher opportunity cost than its trading partners. c. In the case of absolute advantage, a country experiences an increase in total surplus post trade, while in the case of comparative advantage, a country experiences no change in total surplus post trade. d. Absolute advantage occurs when a country benefits by exporting a particular good, while comparative advantage occurs when a country benefits by importing a particular good.
Who would be included in the labor force?
a. Maggie, who plans to work at the newspaper next year when she turns 16 years old. b. Lisa, who is unhappy with her current job. c. Bart, who is a full-time student and uninterested in finding employment. d. None of the above is correct.
Students who talk loudly with each other in class
A) create an externality because other students cannot follow the lecture as well. B) disturb nobody. C) benefit the other students in class because they engage in conversation. D) only create an externality if they talk about something unrelated to class.