Ace has always been a top student, so it was no surprise he won a $1,500 scholarship from the company where he worked summers to help with college expenses. Ace decides to spend his scholarship money on a new Apple MacBook. How will GDP be affected by Ace's recent purchases?
A. Consumption will go up by $1,500, because a computer is a durable good.
B. Investment will go up by $1,500, because a computer is a durable good.
C. GDP will not be affected, since Ace acquired the computer with scholarship money.
D. Consumption will go up by $1,500, because a computer is a nondurable good.
A. Consumption will go up by $1,500, because a computer is a durable good.
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Economists have determined that there are four factors that seem to strongly affect a nation's rate of economic development. Which is NOT one of these four factors?
A) supporting current industries and the jobs they provide instead of adopting new technology that brings disruptive social changes B) developing an educated population C) establishing a system of property rights D) limiting the extent to which the government imposes trade barriers
The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, what is the person's expected wealth?
A) $10,000 B) $20,000 C) $30,000 D) $40,000
Which of the following is a nontariff barrier policy tool?
(a) Sanitary regulations. (b) Average duties. (c) Phased liberalization. (d) Ad valorem tax.
Monopoly rights give inventors and entrepreneurs incentives to innovate and create new products and services.
Answer the following statement true (T) or false (F)