Suppose the government passes a law eliminating holidays and, as a result, the production of goods and services increases because people work more days per year (and thus enjoy less leisure per year). Based on this scenario, which of the following statements is correct?
a. GDP would definitely increase, despite the fact that GDP includes leisure.
b. GDP would definitely increase because GDP excludes leisure.
c. GDP could either increase or decrease because GDP includes leisure.
d. GDP could either increase or decrease because GDP excludes leisure.
b
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Refer to Figure 9-5. The loss in domestic consumer surplus as a result of the tariff is equal to
A) $5 million. B) $19.875 million. C) $24.875 million. D) $31.125 million.
President George W. Bush’s tax cut in 2001 was a rare example of
A. timely monetary policy. B. timely fiscal policy. C. the slow response of policy to events. D. the inability of Congress to react to policy needs.
How much did the median wage for college graduates increase over the last two decades?
a. 10% b. 12% c. 14% d. 16%
Which of the following best expresses the formula for determining the price of a U.S. Treasury bill that matures n periods from now per $100 of face value when the interest rate is i?
A. $100/(1 + i)n B. 1 + $100/(1 + i)n C. $100/(1 + i) D. $100(1 + i)