Suppose that a firm spends $200,000 to build a factory in 2012 that is expected to have a life of 10 years. As a result, GDP in 2012 will increase by:
a. $20,000
b. $200,000
c. You need to know the selling price of the factory to answer this question.
d. It depends upon the tax law regarding depreciation.
B
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If consumers decide to be more frugal and save more out of their income, then this will cause
A) a movement to the left along the supply curve for loanable funds. B) a shift in the supply curve for loanable funds to the left. C) a movement to the right along the supply curve for loanable funds. D) a shift in the supply curve for loanable funds to the right.
The following linear hypothesis can be tested using the F-test with the exception of
A) ?2 = 1 and ?3= ?4/?5. B) ?2 =0. C) ?1 + ?2 = 1 and ?3 = -2?4. D) ?0 = ?1 and ?1 = 0.
If England buys hockey sticks from Canada, then:
A. England has an absolute advantage over Canada in making hockey sticks. B. Canada has an absolute advantage over England in making hockey sticks. C. England has the comparative advantage over Canada in making hockey sticks. D. Canada has the comparative advantage over England in making hockey sticks.
Which of the following groups agree that the government can take steps to reduce both the unemployment rate and the inflation rate (although they disagree on what those steps ought to be)?
a. Keynesians and supply-siders b. Keynesians and neo-Keynesians c. Keynesians and rational expectations economists d. neo-Keynesians and rational expectations economists e. classical economists, neo-Keynesians, and rational expectations economists