If you spend more of your income on consumption goods, which of the following will occur?
A) Economic growth will be stimulated.
B) For every dollar you spend on consumption, real GDP will fall by a dollar.
C) Investments in education will rise.
D) The production of investment goods will fall.
D
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Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. Rooms CleanedPer Hour Meals CookedPer HourLou54Alex33If Alex and Lou work out an efficient arrangement for these two chores, then under that arrangement:
A. Lou would do all of the cleaning and all of the cooking. B. Alex would do all of the cleaning, while Lou would do all the cooking. C. Alex and Lou each would do half of the cooking and half of the cleaning. D. Lou would do all of the cleaning, while Alex would do all of the cooking.
When calculating the compensation of employees part of GDP
A) Social Security contributions must be included. B) fringe benefits are not included. C) taxes withheld on earnings are not included. D) the value of vacation time must be included.
The Social Security system is a pure income transfer program, financed on a pay-as-you-go basis
Indicate whether the statement is true or false
Refer to the diagram for a purely competitive producer. The firm's short-run supply curve is:
A. the abcd segment and above on the MC curve.
B. the bcd segment and above on the MC curve.
C. the cd segment and above on the MC curve.
D. not shown.