Which of the following would increase the consumption component of U.S. GDP?
A. You purchase a bottle of California wine.
B. A restaurant in Denver purchases a bottle of California wine to include on its wine list.
C. The U.S. government buys a bottle of California wine to serve at a state dinner in the White House.
D. A person in Paris purchases a bottle of California wine.
Answer: A
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Firms in monopolistic competition maximize their profit by setting their price equal to their marginal revenue
Indicate whether the statement is true or false
Assume that an economy has 50 workers, each of whom works 3000 hours per year. If labor productivity is $8, total output for this economy will be:
A. $150,000. B. $1,200,000. C. $750,000. D. $1,000,000.
The total market value of all final goods and services produced by resources owned by a country, regardless of where production takes place is
A. national income. B. gross domestic product. C. gross national product. D. gross private domestic investment.
An example of discretionary fiscal policy would be
A. the existence of the progressive federal income tax. B. an interest rate cut implemented to stimulate consumption. C. the existence of the welfare state. D. a federal jobs program adopted to stimulate consumption.