An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to businesses, 100,000 are sold to the government, and 50,000 are sold abroad. No tables are imported. At the end of the year, the table manufacturers hold the unsold tables in inventory. What is the value of the investment component of GDP?
A. $25 million
B. $2 billion
C. $10 million
D. $20 million
Answer: A
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Based on this information, what would be the national standard for an allocatively efficient abatement?
Hypothetically, suppose a recent study of hazardous waste abatement (A) arrives at the following national estimates for abating chemical solvents: MSB = 100 – 0.75A and MSC = 20 + 0.50A, where A is measured in millions of tons per year, and costs are measured in millions of dollars.
Any point on or outside the production possibilities frontier is attainable.
Answer the following statement true (T) or false (F)
Government transfer payments are income earned by individuals who work for the federal government
a. True b. False Indicate whether the statement is true or false
to the diagram, in which Q f is the full-employment output. If the economy's current aggregate demand curve is AD 3 , it is experiencing:
A. a positive GDP gap.
B. a negative GDP gap.
C. a recession.
D. cost-push inflation.