Suppose that the government collects $3 million in taxes, pays $2 million in social security benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible
The government's contribution to GDP is A) $0.
B) $1 million.
C) $3 million.
D) $3.5 million.
B
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As banks lend money in the form of checking accounts:
a. M2 money supply rises when the loan is made and then falls when the loan is spent. b. M2 money supply rises when the loan is made and then falls when the loan is cleared. c. M2 money supply does not change. d. M2 money supply rises when the loan is made and stays at that level until the loan is repaid. e. M2 money supply rises when the loan is made and permanently stays higher until the central bank reverses it.
Two firms, Industrio and Capitalista, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below. Both firms currently use process A, and each emits 4 tons of smoke per day. The government is considering two plans to reduce pollution: requiring both firms to reduce pollution by 25 percent or auctioning pollution permits. Each permit would entitle the owner to emit one ton of smoke per day. Without a permit, no smoke can be emitted.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Industrio ($/day)$350$400$500$700$1,000Cost to Capitalista ($/day)$225$250$290$400$600 If
neither firm had any permits, Industrio would be willing to pay up to ________ for the right to emit 1 ton of smoke, and Capitalista would be willing to pay up to ________ for the right to emit 1 ton of smoke. A. $50; $25 B. $50; $50 C. $1000; $600 D. $300; $200
The ways to look at revenue in a perfectly competitive market include ______ revenue, ______ revenue, and ______ revenue.
a. total, average, marginal b. partial, percentage, marginal c. total, partial, percentage. d. total, average, percentage
ItemBillions of DollarsCheckable Deposits$597Small Time Deposits818Currency639Money-Market Mutual Funds Held by Businesses1,045Savings Deposits, Including Money-Market Deposit Accounts2,866Money-Market Mutual Funds Held by Individuals979Refer to the above table. The size of the M1 money supply is:
A. $979 billion. B. $1618 billion. C. $1236 billion. D. $1415 billion.