How would each of the following events likely change measured GDP?
a. The sale and use of marijuana is legalized.
b. There is an increase in sales of counterfeit video games.
c. A foreign-owned furniture manufacturer opens a production facility in South Carolina.
d. More people choose to forgo their lawn maintenance services to take care of their own yards.
a. If marijuana is legalized, marijuana sales will now be recorded in GDP, so GDP will increase.
b. An increase in sales of counterfeit products will not likely change GDP since these products are illegal and the sales are most likely not being reported.
c. If a foreign-owned manufacturer opens in the United States, U.S. GDP will increase.
d. If people choose to no longer pay for lawn maintenance services and choose instead to perform the services themselves, GDP will decrease.
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Wayne's Jacket Shop sells Wayne's jackets for $20 each. Wayne finds that his total revenues change according to the number of workers he hires, as shown in the table below.WorkersTotal Revenue1$1,00021,40032,00041,6005800What is the marginal revenue product of the fifth worker?
A. $400 B. -$800 C. $160 D. $2
________ of people work at firms that have 50 or more employees
A) Less than 25 percent B) About 50 percent C) More than 75 percent D) Close to 97 percent
The world of flexible exchange rates and perfect capital mobility is often called the
A) Keynesian model. B) Mundell-Fleming model. C) Monetarist model. D) Melvin model.
Which of the following federal agencies is NOT engaged in economic regulation?
A. Federal Aviation Administration B. Food and Drug Administration C. the Federal Reserve D. Federal Deposit Insurance Corporation