Suppose a terrorist group bombs a federal building, causing $ 1 million in expenditures on new construction and healthcare for the victims. The new expenditures
A) would be subtracted from the gross domestic product account.
B) would be added to the gross domestic product account.
C) would be added to the gross domestic product account and subtracted from the national income account.
D) would impact GDP in none of the above ways.
B
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The number of part-time workers for economic reasons ________ during recessions and the number of part-time workers for noneconomic reasons ________ during recessions
A) increases; does not change B) increases; increases C) decreases; increases D) increases; decreases E) does not change; does not change
Refer to Figure 11-13. The lines shown in the diagram are isocost lines. A movement from CE to BD occurs when
A) the price of capital decreases while the price of labor increases. B) the price of labor decreases while the price of capital remains unchanged. C) the price of capital increases while the price of labor decreases. D) the price of capital increases while the price of labor remains unchanged.
The market demand curve is
a. any individual's demand curve multiplied by the number of consumers in the market b. the relationship between income and quantity demanded c. the horizontal sum of the individual demand curves for all consumers in the market d. the vertical summation of all individual demand curves e. the sum of prices paid at each quantity demanded
If price were $20, there would be _____ (shortage or surplus) of about ________.
