If the level of technology rises, GDP per hour of labor
A) decreases for a given level of capital per hour of labor.
B) increases for any level of capital per hour of labor.
C) decreases because the level of capital per hour of labor decreases.
D) increases because the level of capital per hour of labor increases.
E) does not change because GDP increases only when capital or labor increases.
B
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It is important to distinguish investment expenditures from consumption expenditures because
A) households invest and business firms consume. B) foreign firms invest and domestic firms consume C) investment, not consumption, increases the natural real GDP. D) consumption, not investment, increases natural real GDP.
Which of the following is not included in GDP?
a. the fees for legal services rendered by your attorney b. the replacement of brake pads on your six-year-old vehicle c. cash income paid to a day laborer that is not reported to the tax authorities d. the payments for a chiropractor's services
Taxes levied on sellers and taxes levied on buyers are equivalent
a. True b. False Indicate whether the statement is true or false
Cory gets 18, 23, and 25 units worth of total utility from consuming 10, 11, and 12 raw oysters, respectively, and the price per oyster is 25 cents. Thus, one can infer that Cory:
A. has consumed too many oysters. B. is not maximizing his utility. C. should not consume any more oysters. D. is experiencing diminishing marginal utility.