The following is national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), imports ($35), exports ($22), personal consumption expenditures ($2,460), and government purchases ($470). What is GDP in this economy?

A. $3,263 billion
B. $3,290 billion
C. $3,237 billion
D. $3,250 billion


Answer: C

Economics

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Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:

a. nothing, because he enjoys playing basketball more than studying. b. the increase in skill he obtains from playing basketball for that hour. c. the benefit to his grades from studying for an hour. d. nothing, because he had a free pass into the sports complex to play basketball.

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There is an inverse relationship between the required reserve ratio and the money supply

Indicate whether the statement is true or false

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Suppose you are testing the statistical significance (at the 5% significance level) of a parameter estimate from the regression equation: Y = a + bR + cS + dWwhich is estimated using a time-series sample containing monthly observations over a 30-month time period. The critical value of the appropriate test statistic is

A. Fcritical = 7.76. B. Fcritical = 4.22. C. tcritical = 2.042. D. tcritical = 2.056.

Economics