The purchase of a share of stock is excluded in the calculation of Gross Domestic Product (GDP) because it
A. only represents the transfer of ownership rights.
B. is an intermediate good.
C. produces value added.
D. is a final service and not a good.
Answer: A
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What would happen to the optimal amount of pollution if studies found dangerous effects of SO2 cause cancer and the government takes away subsidies to companies for cleaning up their pollution?
A. Uncertain B. Increase C. Stay the same D. Decrease
Refer to the table above. Suppose investment is $12 billion and the economy revises its saving plans so as to save $4 billion less at all levels of income. The new equilibrium GDP will be:
All figures below are in billions of dollars.
A. $260 billion
B. $270 billion
C. $280 billion
D. $290 billion
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 upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
For a consumer, a budget line shows the boundary between
A) what is desired and what is not desired. B) what is needed and what is not needed. C) what is affordable and what is not affordable. D) what is available and what is not available.