Jerry has $50,000 in his savings account and the average new car price is $23,000. Does Jerry have a demand for a new car?
A) Yes, since Jerry can afford a new car.
B) Not necessarily. Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car.
C) Yes, since Jerry's savings is more than double the average new car price.
D) none of the above
B
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Refer to the table above. If imports falls to $45,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall by $5,000 B) gross domestic product will fall by $ 10,000 C) gross domestic product will increase by $5,000 D) gross domestic product will increase by $ 10,000
The above figure shows a firm in monopolistic competition. What price will the firm charge?
A) $12 B) $24 C) $36 D) None of the above answers is correct.
Opportunity wage refers to the
A. Income an individual loses when he or she quits a job. B. Value of goods and services that could be purchased with a certain individual's income. C. Highest wage an individual would earn in his or her best alternative job. D. Income equivalent of a volunteer worker.
Exhibit 5-7 GDP data (billions of dollars) Personal consumption expenditures$5,207 Interest425 Corporate profits735 Government spending1,406 Depreciation830 Rental income146 Gross private domestic investment1,116 Compensation of employees4,426 Exports870 Imports965 Indirect business taxes553 Proprietors' income520 Personal taxes886 Social Security taxes432 Transfer payments376 In Exhibit 5-7, national income (NI) is:
A. $6,254 billion. B. $6,495 billion. C. $6,805 billion. D. $7,637.7 billion.