GDP can be calculated by summing:
A. consumption, investment, government purchases, exports, and imports.
B. consumption, investment, government purchases, and net exports.
C. consumption, investment, wages, and rents.
D. consumption, investment, government purchases, and imports.
B. consumption, investment, government purchases, and net exports.
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The amount of the tax revenue paid by the buyer is
A. $300. B. $600. C. $2100. D. $900.
If a firm's product is perishable, where is the firm usually located?
(A) Near a river (B) In a city (C) Near its suppliers (D) Near its consumers
Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. If the government will not allow retailers to charge more than $0.40 for a pencil, which of the following will happen?
A. Supply must eventually increase so that the market will come into equilibrium at a price of $0.40. B. A nonprice rationing system such as queuing must be used to ration the available supply of pencils. C. Demand must eventually decrease so that the market will come into equilibrium at a price of $0.40. D. The market will be in equilibrium at a price of $0.40.
If people never withdraw cash from banks and there are no required reserves, how much money can the banking system potentially create for a given amount of new deposits?
A. None. B. The same amount as the new deposits. C. An infinite amount of money. D. The amount of new deposits multiplied by the reserve ratio.