A farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is included in GDP as
A. a durable consumption good.
B. part of gross private domestic investment.
C. a nondurable consumption good.
D. a service.
Answer: B
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Taxation and government spending are examples of fiscal policy tools used to stabilize an economy
Indicate whether the statement is true or false
In the long run, the firm ________ change the number of workers it employs and ________ change the size of its plant.
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) In order to answer the question, more information is needed about how long the long run is.
Bob and Mary each have a Ph.D. in economics. Bob has a job in private industry at which he earns $90,000 a year. Mary earns half that much as a college professor. Which of the following could not explain Mary's career choice?
a. She experiences diminishing marginal utility. b. She enjoys the flexibility of her schedule. c. She enjoys teaching. d. She enjoys the informal atmosphere of a college. e. She likes having her summers free to do research.
A monopoly firm is different from a perfectly competitive firm in that
A. there are many substitutes for the monopolist's product, whereas there are no close substitutes for the perfectly competitive firm's product. B. the monopolist's demand curve is perfectly inelastic, whereas the perfectly competitive firm's demand curve is perfectly elastic. C. the monopolist can influence price in the market, whereas the perfectly competitive firm is a price taker. D. All of these choices are true.