Which one of the following transactions would be included in GDP?
A. Ms. Kim pays $50 for a used picture frame at a neighborhood garage sale.
B. Mr. Doe donates $500 to his town's junior college scholarship fund.
C. Ms. Bartolini pays $500 to fix the front end of her car damaged in a recent accident.
D. Ms. Smith pays $5,000 to purchase 100 shares of Microsoft stock.
Answer: C
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A perfectly competitive firm has a random demand with a 30 percent chance of being $15 and a 70 percent chance of being $20. What is the firm's expected marginal revenue?
A) $20.00 B) $15.00 C) $19.00 D) $18.50
The idea of purchasing power parity:
A. always holds. B. rarely holds. C. explains why standards of living have changed over time. D. explains how standards of living is fixed over time.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
The purchase and sale of government securities by the Fed is called:
A. Federal funds market B. Open market operations C. Money market transactions D. Term auction facility