Rhonda sells a house she has owned for 15 years and starts living in a rented apartment. To make it more marketable, she buys carpeting that she has professionally installed and buys wallpaper that her daughter hangs. Which items would be included in this year's gross domestic product (GDP)?
a. The sale price of the house
b. The cost of transporting all her furnitures to the new apartment
c. The opportunity cost of Rhonda's daughter's time
d. The opportunity cost of Rhonda's time
e. The purchase price for carpet and wallpaper, and the installation fee for the carpet
e
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The CPI overstates inflation because the average consumer buys
A) less of those goods whose relative price has risen. B) more of those goods whose relative price has risen. C) lower quality goods if they have a choice. D) the same basket of goods every week. E) a generally random assortment of goods and services each week because what is purchased depends on what the consumer needs.
The figure illustrates Elijah's preferences. He is currently at point A. The price of pizza decreases. The move from point A to point ________ is the substitution effect and the move from point ________ to point ________ is the income effect
A) B; B; C B) E; E; C C) D; D; B D) C; C; B
Marginal revenue measures the change in
a. output generated by a change in price b. price generated by a change in output c. output generated by hiring one more factor of production d. total revenue generated by a change in price e. total revenue generated by a change in output
Under a floating exchange rate system with mobile international capital, it is always true that current account
A. deficit + capital account surplus = trade deficit. B. surplus ? capital account surplus = trade deficit. C. surplus + capital account deficit = 0. D. surplus ? capital account surplus = 0.