Aggregate expenditures include all of the following EXCEPT
A) consumption of food.
B) purchases of intermediate goods.
C) purchases of a piece of capital equipment.
D) purchases of guns by the government.
B
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When measuring GDP by the income approach, wage income includes i. health-care insurance paid for by the firm for its employees. ii. Social Security contributions made by the firm. iii. wages paid during a worker's vacation time
A) i, ii and iii B) i and ii only C) i only D) ii only E) ii and iii only
Sources of reduced volatility of demand shocks include all of the following EXCEPT
A) smaller ups and downs of military spending. B) residential construction. C) inventory changes. D) saving rates.
Price elasticities of supply are always:
a. the same as price elasticities of demand. b. negative numbers. c. positive numbers. d. greater than one. e. increased when a tax is imposed.
One policy the government can use to remedy the effects of pollution caused by the production of a good is to
a. lower the price of the good b. create positive externalities to compensate for the negative ones c. levy a tax on each unit of the good produced d. create free riders e. increase the production of the polluting good