Which of the following is NOT a private cost?
A. the coffee pot that Jan dropped and broke this morning
B. the pollution caused by a firm dumping its wastes into the river
C. the health insurance costs a firm must pay for its employees
D. the amount that a firm must pay for raw materials to make its product
Answer: B
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If the growth rate for GDP was 5 percent and GDP in year 1 was 140, then GDP in year 2 would be
A) 133.3. B) 135. C) 145. D) 147.
Which of the following is not a tax-deferred saving method?
a. IRAs b. Keogh plans c. 403(b) plans d. Kemp IRA
The demand for money in an economy is high when the: a. real GDP is low
b. personal tax rate is low. c. unemployment rate is high. d. price level is high. e. interest rate is high.
Exhibit 2-7 Production possibilities curve
For the economy shown in Exhibit 2-7 to operate at point C, it must:
A. be willing to lower the price of grain. B. use its given resources more efficiently than it would at point A. C. experience resource unemployment. D. experience an increase in its resources and/or an improvement in its technology.