Which of the following would increase the consumption component of U.S. GDP?
A. A business purchases Disney World vacations as rewards for the firm's best salespeople.
B. Disney World purchases tires for the monorail from a firm in Ohio.
C. A French man purchases a vacation at a Disney theme park in France.
D. You purchase a vacation at Disney World in Florida.
Answer: D
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Economists refer to the talents, training, and education of workers as:
A. labor supply. B. physical capital. C. human capital. D. average labor productivity.
Tom and Di grow tomatoes and turnips. Tom has a comparative advantage in growing tomatoes if ________
A) Tom can grow more tomatoes than Di can B) his opportunity cost of tomatoes is less than Di's opportunity cost of tomatoes C) his opportunity cost of tomatoes is less than his opportunity cost of turnips D) his marginal benefit from tomatoes is greater than Di's
The typical cyclically unemployed person includes
A) Andrew, a teenager who has just entered the labor market looking for his first part-time job. B) Barbara, who is re-entering the labor market after a divorce. C) Charles, who was laid off from his factory job but expects to be recalled in a few weeks. D) Diana, who has quit her job and is now looking for another.
A government policy that is consistent with real business cycle theory would be for
A) government to vary its spending in response to shocks to total factor productivity. B) the monetary authority to expand and contract the nominal money supply in response to shocks to total factor productivity. C) government to smooth out tax distortions over time. D) government to vary its lump-sum tax collections in response to changes in total factor productivity.