Refer to Figure 9.2. A movement from point b to point d could be caused by a(n)
A) decrease in government spending.
B) increase in the price of oil.
C) decrease in taxes.
D) increase in short-run aggregate supply.
C
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The following interactions between binary and continuous variables are possible, with the exception of
A) Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui. B) Yi = ?0 + ?1Xi + ?2(Xi × Di) + ui. C) Yi = (?0 + Di) + ?1Xi + ui. D) Yi = ?0 + ?1Xi + ?2Di + ui.
At the point where the marginal revenue equals zero for a monopolist facing a straight-line demand curve, total revenue is:
a. greater than 1. b. maximum. c. less than 1. d. equal to zero.
National saving is saving by:
A. the entire economy. B. the government. C. households and firms D. households for retirement.
Answer the following questions true (T) or false (F)
1. If Gladys sells her 2003 Jeep Cherokee for $3,500 in 2018, the sale of her car contributes $3,500 to 2018 GDP. 2. The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world. 3. Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services.