Marvin's Metal Company produces screws that it sells to Ford, which uses the screws as a component of its cars. In the national income accounts, the screws are classified as
A. final goods.
B. capital goods.
C. inventory.
D. intermediate goods.
Answer: D
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The prime rate is the interest rate at which banks can borrow from the Fed
Indicate whether the statement is true or false
Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Free trade between these two countries will take place
A) as long as Canada is willing to give up 0.25 unit of clothing to get a unit of food. B) as long as USA asks for at least 1.5 units of clothing in exchange for a unit of food. C) as long as Canada asks for at least 3 units of food in exchange for a unit of clothing. D) as long as USA is willing to give up at least 1.5 units of food in exchange for a unit of clothing.
If a rent control policy is enacted to protect apartment renters, this is likely to lead to
A. an increase in the supply of apartments. B. rise in the number of households looking for rental units. C. increased investment in rental properties. D. the conversion of office buildings to rental apartments.
Based on our understanding of the model presented in Chapter 3, we know with certainty that an equal and simultaneous increase in G and T will cause
A) an increase in output. B) no change in output. C) a reduction in output. D) an increase in investment.