An increase in the price level results in a(n) ________ in the quantity of real GDP demanded because ________
A) decrease; a higher price level increases consumption, investment, and net exports.
B) increase; a higher price level increases consumption, investment, and net exports.
C) decrease; a higher price level reduces consumption, investment, and net exports.
D) increase; a higher price level reduces consumption, investment, and net exports.
C
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If Marie buys a sailboat, which increases the productivity of her leisure time, she
a. increases her productivity of nonmarket work b. increases her productivity of market work c. will spend less time in nonmarket work d. will spend less time in leisure activities e. will spend more time in market work to pay for the boat's maintenance
In the simple circular-flow diagram, with households and firms, GDP can be computed a. as the total payments for factors of production made by households
b. as the total expenditures by households on goods but not services, since services are intangible. c. as the total expenditures by households on goods and services. d. as the total expenditures by households on goods and services, less taxes paid.
Refer to the information provided in Table 31.2 below to answer the question(s) that follow.Table 31.2PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 50 60 2153 50 70 2254 50 80 230Refer to Table 31.2. During Period 2, labor productivity is equal to
A. 0.23. B. 0.51. C. 1.95. D. 4.3.
According to the graph shown, producer surplus is:
A. $120. B. $48. C. $36. D. None of these.