Answer the next question based on the following data. The following national income data are in billions of dollars.1Consumption of fixed capital$4382Taxes on production and imports3263Compensation of employees2,3474Rents145Interest2876Proprietors' income2427Corporate profits2978Personal consumption expenditures2,5829Gross private domestic investment66910Government purchases81511Net exports-7812Net foreign factor income4613Statistical discrepancy50The expenditures approach to GDP calculation can be done by adding ________.
A. 8 through 13
B. 8 through 11
C. 2 through 7
D. 1 through 7
Answer: B
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The vicious circle of poverty is the trap that parents with low education tend to have children with low education
a. True b. False Indicate whether the statement is true or false
When the price level in the United States rises, then net exports should
a. rise and equilibrium real GDP should increase. b. fall and equilibrium real GDP should increase. c. fall and equilibrium real GDP should decrease. d. rise and equilibrium real GDP should decrease.
Two college students, Mary and Maggie, are spending spring break in Florida. Mary buys a cup of coffee each morning at the local Starbucks rather than from one of the local coffee shops. Maggie claims that Mary is irrational because she never purchases Starbucks coffee at home, and Starbucks coffee costs more than the coffee sold by local shops. An economist would most likely explain Mary's
behavior by suggesting that a. Mary's behavior is rational, but Maggie's behavior is clearly irrational. b. Mary's behavior is clearly irrational, but Maggie's behavior is rational. c. the Starbucks brand name suggests consistent quality. d. the advertising by Starbucks in Florida is more persuasive than the advertising by Starbucks in Mary and Maggie's home town.
The income elasticity of demand for low-quality beef is -2. Thus, an 8% decrease in the quantity of low-quality beef demanded
A. is the result of an increase in income of 4%. B. is the result of an increase in income of 0.25%. C. is the result of a decrease in income of 4%. D. is unrelated to any change in income.