Gross domestic product (GDP) figures tend to understate the quantity of goods and services available because:
a. GDP excludes the value of goods produced at home
b. many items are counted twice or more in the intermediate stages of production.
c. more women are entering the labor force.
d. firms often add less to inventories than they planned to.
e. exports are subtracted from GDP but imports are not added.
a
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Refer to the below table. The decline in percentage of income received from before taxes and transfers to after taxes and transfers is greatest for the:
A. Second 20% of households
B. Third 20% of households
C. Fourth 20% of households
D. Highest 20% of households
Congressman Murphy made the following proposal: "We should establish policies that completely eliminate air pollution. This is the only way to ensure that none of our citizens suffer the negative effects of air pollution"
If Congressman Murphy's proposal was adopted and all forms of air pollution were eliminated, which of the following would be true? A) The total cost of pollution reductions would equal the total benefit to society. B) The marginal cost from pollution reductions would exceed the marginal benefit. C) The total benefit to society from reductions in air pollution would be maximized. D) Economic efficiency would be maximized
The growth rate of real GDP per worker results from
A) convergence to the steady state and steady-state growth. B) growth from total factor productivity minus depreciation. C) growth from labor productivity and growth from the labor force. D) growth from investment and growth from break-even investment.
Exhibit 8-1 Disposable income and consumption data Disposable Income(Y) Consumption(C) 0 500 1,000 1,400 2,000 2,200 3,000 2,900 4,000 3,500 5,000 4,000 In Exhibit 8-1, when disposable income (Y) is increased from $1,000 to $2,000, the marginal propensity to consume is:
A. 0.2. B. 0.6. C. 0.8. D. 1.0.