A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP
a. increases by $40.
b. increases by $220.
c. increases by $280.
d. increases by $1500.
b
You might also like to view...
When real Gross Domestic Product (GDP) falls, which of the following will automatically occur?
A) an increase in income tax revenues B) a decrease in all tax rates C) a decrease in unemployment compensation expenditures D) a decrease in income tax revenues
Mrs. Wallace and Mrs. Jackson both signed up for 6 months (each incurred a $200 total payment required in advance, and nonrefundable) at the local workout club. Wallace enjoyed all 6 months
Jackson dropped out after three months due to other unexpected commitments. Which of the following is true? A) Wallace's sunk cost was zero. B) Jackson's sunk cost was $100. C) Jackson's sunk cost was $200, and so was Wallace's. D) Wallace's sunk cost was $100. E) None of the above.
Suppose the market price for wheat changes, and we move from point A to point B on the wheat demand curve
If the price elasticity of wheat demand was -0.3 at point A and -0.4 at point B, what is a plausible value for the arc elasticity of demand for wheat between points A and B? A) -0.25 B) -0.35 C) -0.45 D) -0.70
An example of a positive externality is
a. pollution because it affects people not directly involved with producing it b. a homeowner's maintenance of a beautiful lawn because this creates a benefit for neighbors c. creating a monopoly d. driving a car that emits pollution e. cigarette smoking because this imposes an indirect cost on people around the smoker