Which of the following would increase the consumption component of U.S. GDP?
A. A restaurant in Denver purchases a bottle of California wine to include on its wine list.
B. The U.S. government buys a bottle of California wine to serve at a state dinner in the White House.
C. A person in Paris purchases a bottle of California wine.
D. You purchase a bottle of California wine.
Answer: D
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What is the basic criticism that economic theory levels against the movement to base wages on the "comparable worth" of jobs?
A) Markets, not employers, set wage rates for different jobs. B) There are no jobs that are inherently more suitable for women than for men. C) There is no way to compare the satisfactions that different people derive from a job. D) Wage rates determine the worth of workers to an employer by determining the number that will be hired. E) Wage rates will be set by supply and demand and cannot be changed by anything government does.
The three main methods that governments use to cope with an external cost of production include all of the following EXCEPT
A) taxes. B) mandating clean technology. C) cap-and-trade D) price floors.
Nonexcludability is a matter of degree. As the cost of excluding individuals rises, _____
a. the marginal cost of provision increase b. the marginal cost of provision decreases c. the probability of free riding declines d. the probability of free riding increases
Having an absolute advantage in the production of a good implies that a country
a. should specialize in the production of the good b. is able to produce the good with fewer resources than another country c. should not specialize in the production of the good d. also has the comparative advantage in the production of the good e. cannot have an absolute advantage in the production of the good