The benefit (or satisfaction) that an individual expects to derive from an activity is called

Use the following table with data for a private closed economy (an economy with only a private sector and no international trade) to answer the next question. All figures are in billions of dollars.Expected Rate of ReturnInvestmentConsumptionGDP10%$0$400$4008100500600620060080043007001,00024008001,20005009001,400If the real rate of interest is 2%, then the equilibrium level of real GDP will be

A. $800 billion. B. $1,200 billion. C. $1,400 billion. D. $1,000 billion.

If the money supply in the economy were at MS3, to engage in expansionary policy the Federal Reserve Bank would use open market operation to move money supply to:

A. MS1
B. MS2
C. MS4
D. it would stay at MS3

Answer the following statements true (T) or false (F)

1. As the price of U.S. dollars decreases, more foreign currency is required to purchase dollars. 2. If the exchange rate between the U.S. dollar and the Swiss franc changes from 75 cents per Swiss franc to $1 per Swiss franc, the dollar has depreciated, since its value has declined. 3. Appreciation of the U.S. dollar encourages travel abroad by U.S. citizens. 4. Under a system of floating exchange rates, exchange rates are allowed to rise or fall according to supply and demand. 5. A nation on the gold standard would convert its currency into gold on demand.

Which of the following experiments will yield observations that would allow one to calculate the marginal physical product of labor?

a. increase the number of lumberjacks with chain saws and observe the change in output of cut trees b. increase the number of workers on an assembly line and record the change in output c. Both a and b are correct. d. Neither a nor b are correct.