Kelly's Surf Shop orders 5,000 new surf boards at the beginning of the year but only sells 4,500 by the end of the year. How are the 500 unsold surfboards accounted for in Gross Domestic Product?
A) They will be included in the nondurable consumption category of GDP.
B) They will be included in the residential investment category of GDP.
C) They will be included in the government spending category of GDP.
D) They will be included in the inventory investment category of GDP.
E) They will be included in the durable consumption category of GDP.
D
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A monopsony will:
a. hire more workers than a competitive employer. b. pay a higher wage than a competitive employer. c. employ a quantity of labor where the marginal revenue product equals the marginal factor cost. d. all of these.
Currently, the U.S. economy is best described as:
A.) A service economy. B.) A manufacturing economy. C.) An agricultural economy. D.) A government economy.
Assume you pay a tax of $4000 on a taxable income of $24,000. If your taxable income were $30,000, your tax payment would be $5000. This tax structure is:
A. discriminatory. B. regressive. C. proportional. D. progressive.
The special-interest theory of government predicts that governments have a strong incentive to pursue policies that are in the public interest.
Answer the following statement true (T) or false (F)