Personal consumption expenditures
a. represent approximately two-thirds of GDP
b. are equal to personal income minus individual taxes
c. include durable good purchases but not nondurable good purchases
d. do not include any intangible consumption items
e. include all goods and services bought by the government
A
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The value of an investment in an index fund depends on
A. the earnings estimate for the major index constituent. B. the average performance of all mutual funds. C. what happens to the prices of all stocks in that index. D. the specific stock selection practices employed by the fund manager.
Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. If PP = $0.75, what is Coke's demand function?
A. QC = 90 - 400PC B. QC = 390 - 500PC C. QC = 390 - 400PC D. QC = 465 - 400PC
Suppose households attempt to decrease their money holdings. To counter this decrease in money demand and stabilize output, the Federal Reserve will
a. increase government spending. b. increase the money supply. c. decrease government spending. d. decrease the money supply.
If a country's income level is high:
A. it must be well-endowed with natural resources. B. it must have a high level of growth. C. it usually has a high level of GDP per capita. D. All of these are true.