Apple has been producing the new iPhone throughout 2013, but doesn't plan to sell it until March 2014. How are these iPhones, which are sitting in a warehouse somewhere in the U.S., affecting GDP?
A. They are inventory and will decrease investment in 2013.
B. They will increase GDP only in the year they are produced, 2013.
C. They are considered inventory until they sell, so investment will increase when they are sold in 2014.
D. They are not counted in GDP at all since they were not sold.
B. They will increase GDP only in the year they are produced, 2013.
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Political stability is not a prerequisite to economic growth
Indicate whether the statement is true or false
Even as the U.S. government ran large budget deficits in the early 2000s, the interest rate did not rise substantially. Which of the following is among the reasons that crowding out did not raise interest rates at that time?
A. The Federal Reserve decreased the money supply. B. The government spent the borrowed money in such a way that productivity, and therefore the availability of savings, dramatically increased. C. Americans increased their willingness to save at the same time that the budget deficits appeared. D. Foreigners were willing to finance the U.S. deficit with their abundant supply of savings.
Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 30 chicken breasts per hour by hand, while Tom's experience allows him to debone 60 chicken breasts per hour by hand. Ted buys one new machine that can debone 100 chicken breasts per hour. Both Mike and Tom work the same 40 hours per week, but one of them is assigned to operate the machine instead of deboning the chicken breasts by hand. To obtain maximum average hourly productivity, ________ is assigned to use the machine and their combined average hourly productivity as a team is ________ chicken breasts
A. Mike; 80 B. Mike; 65 C. Tom; 80 D. Tom; 65
Terence has $50 per week to spend on Subway sandwiches and milkshakes. The price of a Subway sandwich is $5 and the price of a milkshake is $4. He buys 6 sandwiches and 5 milkshakes. The marginal utility of the 6th sandwich = 25 and the marginal utility
of the 5th milkshake = 24. Which of the following is true? A) He is not maximizing his utility and should buy more milkshakes. B) He is maximizing his utility. C) He is not maximizing his utility and should buy more Subway sandwiches. D) He is not maximizing his utility because he is not spending all of his income.