Which of the following items is included in GDP?
A. the value of a medical service
B. proceeds for a garage sale of used goods
C. purchase of a government bond
D. the value of home cooking
Answer: A
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Apple Computer is more likely to continue to use input markets rather than manufacture its own inputs internally when
a. the quality of inputs is difficult to determine b. switching among input suppliers is easy c. there are very few firms producing the input d. the input is difficult to identify and define e. transaction costs go up
Simplifying the budget document by concentrating only on major groupings and eliminating line items would: a. ensure that cabinet members spend more time on administering an approved budget and defending a proposed budget. b. require longer-term economic forecasts that are difficult to obtain
c. prevent elected officials from including projects they prefer for their personal gains in the budget. d. increase the flexibility of the discretionary fiscal policy implemented by the federal government. e. require shorter-term economic forecasts that are easy to obtain.
A decrease in the quantity of resources
A) shifts the PPF leftward. B) shifts the PPF rightward. C) moves the economy up a given PPF. D) moves the economy down a given PPF.
The proposition that states that as output increases for one good in an economy that is on its production possibilities curve, the cost of additional units of the good on the horizontal axis will be greater and greater is the:
A) law of absolute advantage. B) law of increasing opportunity cost. C) law of policy ineffectiveness. D) law of demand.