Payments for goods and services that will be used up by households during the year are
A. investment expenditures for the production of output.
B. made by firms to households and called national income.
C. called consumption expenditures.
D. for intermediate goods and are not counted in GDP.
Ans: C. called consumption expenditures.
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The cost of repositioning an automobile gas tank for greater safety is $11 per vehicle for 12.5 million vehicles. The automobile company places a value on life of $500,000. To justify redesigning the location of the gas tank, the number of deaths expected to occur if the gas tank location is not redesigned would have to be at least:
A. 175. B. 1. C. 100. D. 275.
In a typical year, new small firms create ________ jobs
A) 250,000 B) 1.1 million C) 1.8 million D) 3.3 million
Marginal social benefit equals
A) marginal external benefit. B) marginal private benefit. C) marginal private benefit minus marginal external benefit. D) marginal private benefit plus marginal external benefit. E) marginal external benefit minus marginal private benefit.
As the size of a nation's outstanding debt gets larger and larger relative to the size of the economy:
a. eventually it will become difficult for the country to borrow in global credit markets. b. the country will have to pay higher real interest rates in order to induce investors to purchase its bonds. c. at some point, the country will be more or less forced to bring spending into line with revenues in order to maintain the confidence of investors. d. all of these are correct.