All final goods and services that make up GDP can be expressed in the form:
a. GDP = C + I + G + (X + M).
b. GDP = C + I – G + (X + M).
c. GDP = C + I + (X – M).
d. GDP = C + I + G + (X – M).
d
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Which of the following components of spending is not treated as a given value in the short-run macro model?
a. Net exports b. Imports c. Investment spending d. Consumption spending e. Government spending
Figure 11.1Figure 11.1 depicts demand and costs for a monopolistically competitive firm. At the profit maximizing output level:
A. this firm is earning economic profits equal to zero. B. this firm is earning economic profits equal to Q1(P1 - AC1). C. this firm is earning economic profits equal to P1(Q1 - AC1). D. this firm is in long-run equilibrium.
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1000. All five citizens will share an equal portion of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $210 to Clara, $180 to Joe, and $120 to Matt. Who are likely to vote in favor of this proposal?
A. Abby, Ben, Clara, and Joe B. Ben, Clara, Joe, and Matt C. Ben, Clara, and Joe D. Abby, Ben, and Clara
Who from among the following would be counted as unemployed?
A. A person with a part-time job who wants and is looking for a full-time job. B. A person who is willing to work but has not looked for a job in two months. C. A person who is willing to work and has looked for a job in the last week. D. All of these people would be counted as unemployed.