Fun Time Toys produced $60 million worth of toys in 2008 . Because of a slow Christmas shopping season, only $50 million worth was sold to consumers, and the remaining $10 million worth went into inventories. Based on this information, how was GDP affected in 2008?
a. $60 million was added to GDP; $50 million was classified as consumption spending and $10 million was classified as private investment
b. $60 million was added to GDP, all classified as consumption spending
c. $50 million was added to GDP, all classified as consumption spending
d. $40 million was added to GDP; $50 million was classified as consumption and -$10 million was classified as private investment
e. $40 million was added to GDP, all classified as consumption
A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Refer to Figure 4.8. This game will end up with
A) everyone at the beach. B) everyone at the park. C) half of your friends at the beach and half at the park. D) either a or b
The government's role in limiting smoking in many buildings is justified by considerations of
A. Externalities. B. Inequity. C. Market power. D. Government failure.
Refer to the labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. If this were a monopsonistic labor market, the equilibrium wage rate and level of employment would be:
A. $5 and 3 respectively.
B. $6 and 4 respectively.
C. $7 and 5 respectively.
D. $8 and 3 respectively.