In the diagram, it is assumed that investment, net exports, and government purchases:
A. are leakages from the circular flow.
B. are independent of the level of GDP.
C. vary inversely with GDP.
D. vary directly with GDP.
B. are independent of the level of GDP.
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The reward for the capture of Jesse James was $500.00 in 1881. Suppose the CPI in 1881 was 0.25. What is the real value of the reward in 2010 dollars if the CPI was 218.1 in 2010?
What will be an ideal response?
Rebecca and Leah are roommates. Rebecca likes to study with the music playing loudly and Leah needs quiet when she studies. Rebecca would be willing to pay $5 a night to hear music while Leah would be willing to pay $10 a night for the quiet. In this situation
a. Leah should pay Rebecca $7.50 a night to not listen to music, because that would be a Pareto improvement b. Rebecca should stop listening to music because that would be a Pareto improvement c. There is no action that would create a Pareto improvement d. Rebecca should pay Leah $7.50 a night to listen to music, because that would be a Pareto improvement e. Leah should pay Rebecca $4.50 a night to not listen to music, because that would be a Pareto improvement
The portion of income that is spent on productive inputs, such as factories, machinery, and inventories, is called:
A. investment. B. savings. C. consumption spending. D. loanable funds.
Which of the following cost curves is not generally U-shaped? a. AFC
b. AVC. c. ATC. d. MC.