Which of the following generate an income that would be excluded from the GDP of an economy?
a. A professional working in small start-up firm
b. A person selling heroin to tourists
c. A person selling electronic guides to tourists
d. A farmer selling oranges to a fruit seller
b
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What is the effect of supply-side inflation on the short-run Phillips curve?
If your disposable income increases from $10,000 to $15,000 and your consumption increases from $9,000 to $12,000, your marginal propensity to consume is:
A.0.8 B.0.6 C.0.4 D.0.2
The industry represented by the graph below must be one where:
A. Resource prices rise when the industry contracts
B. Resource prices fall when the industry expands
C. Resource prices fall when the industry contracts
D. Resource prices are unaffected by the industry's expansion
Carlos has been invited to go skiing for the afternoon with his friends. It will cost $40 for a lift ticket. It is likely Carlos will:
A. overvalue the benefit of skiing. B. undervalue the opportunity cost of his afternoon. C. find it difficult to place a value on what he might do instead of skiing. D. All of these are true.