Refer to the table above. If consumption expenditure increases to $200,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall to $367,000 B) gross domestic product will increase to $367,000
C) gross domestic product will increase to $400,000 D) gross domestic product will fall to $400,000
B
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For a firm in a perfectly competitive labor market, the supply curve of labor is
A) elastic. B) inelastic. C) perfectly elastic. D) perfectly inelastic.
Jake brings his Xbox home over winter break and leaves it there, thinking he will study more in the spring without it around. Jake is:
A. trying to compensate for the time-inconsistency of his desire to study more, but temptation to play video games instead. B. forcing his behavior to match economic theory. C. not acting rationally, since what he really wants is to play games all day. D. demonstrating that he has forgotten the fungibility of money.
Which of the following statements is true about investments in general and specific human capital?
a. Firms invest in development of general human capital of their employees. b. Employees invest in gaining specific human capital. c. Investment in general human capital of its employees by a firm may turn into a sunk cost if the employee leaves the organization to join another after completing the relevant training. d. When a firm invests in specific human capital of its employees, the employees become more attractive to other firms whose workplaces are operated and staffed differently.
The Maastricht Treaty, signed in 1992, initiated:
A) European political integration. B) an economic and monetary union that featured a common currency. C) an alliance of nations who opposed environmental harms from trade. D) an agreement for free flow of labor and other resources across borders.