The components of GDP are
A. C + I + X - (G + M).
B. C + I + G - (X + M).
C. C + I - G + (X - M).
D. C + I + G + (X - M).
Answer: D
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The mayor of Newton is considering proposals to deal with an unsafe intersection. She could install a traffic light at a cost of $50,000 or she could install stop signs at a cost of $5,000 . The traffic light is expected to reduce the risk of fatality
by 0.45 percent and the stop signs are expected to reduce the risk of fatality by 0.054 percent. If the value of human life is estimated to be $10 million, what choice should the mayor make? Briefly explain.
Which component(s) of U.S. real GDP decreased in size relative to total U.S. real GDP from 1950 to 2000?
A. Only services. B. Only manufacturing. C. Agriculture and manufacturing. D. Only agriculture.
Under the gold standard,
A. no nation had control of its domestic monetary policy, and therefore no nation could control its aggregate demand. B. the world’s commerce was at the mercy of gold discoveries. C. discoveries of gold meant higher prices in the long run and higher real economic activity in the short run. D. All of the above are correct.
For a linear production function, q = f(L,K) = 4L + 2K, what is the short-run production function given that capital is fixed at = 50?
A) q = 4L + 100 B) q = 4L + 50 C) q = 4L D) q = 104