Which of the following would be included in the government expenditures component of GDP?
a. The export of 100 fighter jets to Japan
b. Construction costs of a new public school building
c. Food stamps used by the Smith family
d. A $1,000 check issued by the federal government as part of the Pell Grant program to help college students pay for school
b
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Demand curves for the services of productive resources
A) have no meaning, because people must have income in order to live. B) obey the law of demand. C) tend to be perfectly elastic in the long run because any resource can ultimately function as a substitute for any other. D) tend to be perfectly inelastic in the short run as long as production processes are determined by technology.
Human wants:
a. are unfilled only in the poorer countries of the world. b. can be completely satisfied by advancing technology. c. can never be fully satisfied. d. only apply to necessities. e. exist only if we are selfish.
The marginal fixed cost of a firm:
a. is a positive constant irrespective of output level. b. declines as output is increased because a fixed numerator is divided by an ever-growing denominator. c. generally increases as output is increased. d. is equal to average variable cost and average total cost at their minimum points. e. is always equal to zero and is therefore ignored by economists.
To stabilize real GDP, the Fed must increase the money supply in response to a
a. positive demand shock b. low level of unemployment c. sudden upsurge in inflation d. rise in the interest rate e. negative demand shock