For each of the following, how would they be included in the national income accounts?
a. The University of California buys a new computer.
b. Charles buys a new MP3 player.
c. Marian buys a new mountain cabin.
d. Vikki buys an old mansion with hopes of restoring it.
e. Farmer Brown buys a used combine harvester.
a. Government purchases. Purchased by a state university.
b. Consumption. Purchased by an individual.
c. Investment. New house purchased by an individual.
d. Not included. Built in a previous year.
e. Not included. Only newly produced goods are included.
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Keynes referred to the sharp, often irrational, changes in the outlook of investors as the ________ of investors
A) primal needs B) crowd psychology C) animal spirits D) chaotic behavior
Which of the following is true when regulators require a natural monopolist to set price equal to marginal cost?
a. This policy results in a less than socially optimal allocation of resources. b. The marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit. c. The monopolist will face recurring losses unless a subsidy is provided. d. The monopolist will earn a normal profit. e. The monopolist will earn more than a fair return.
The most severe depression in the United States was the 30 percent decrease in real GDP that occurred between
A. 1899 and 1913. B. 1929 and 1933. C. 1959 and 1963. D. 1979 and 1983.
Marginally attached workers
A. are not looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. B. don't have jobs and are pessimistic about their chances of finding a suitable job. C. have a bad attitude towards work. D. are working part-time, but they want full-time work.