All points below a given indifference curve are
A) less preferred to any point on the indifference curve.
B) preferred to any point on the indifference curve.
C) definitely affordable.
D) Both answers A and C are correct.
A
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Pete throws leftover bread onto his front lawn because he enjoys watching the pigeons feeding. His neighbor John is not happy about the pigeons, since they leave a mess on his property. This is an example of a nice gesture causing a
a. negative externality b. public good c. positive externaility d. third-party benefit e. free-rider outcome
Which of the following examples of production of goods and services would be included in U.S. GDP?
a. Sally, a Canadian citizen, works on a drilling crew in North Dakota for Northland Gas Services, and Northland sells the natural gas to a utility company in Canada. b. Jim grows pecans for his family in the yard of their San Antonio home. c. Joe grows marijuana in his Kansas City home and sells it to his friends and neighbors. d. None of the above examples of production would be included in U.S. GDP.
The contribution of ________ to federal tax receipts is larger than the contribution of ________
A) personal income taxes; corporate income taxes B) corporate income taxes; payroll taxes C) corporate income taxes; personal income taxes D) excise taxes; social insurance taxes
The Federal Reserve econometric model estimates that a 1 percent increase in government spending, with the money supply increased to hold the interest rate constant, will
A) increase real GDP by 3 percent in 3 years. B) increase real GDP by 3 percent in 4 years. C) increase real GDP by 1 percent 2 years. D) have no effect on real GDP after 3 years.