When the expenditure approach is used to measure GDP, the major components of GDP are
What will be an ideal response?
consumption, investment, government consumption and gross investment, and net exports.
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One characteristic of a public good is that it is ____________, which means that it is costly or impossible to prevent someone from using the good.
a. nonrivalrous b. noncooperative c. nonexcludable d. nonpartisan
If the multiplier is 4, a decrease in spending equal to $80 billion will be accompanied by a decrease in GDP of
A. $480 billion. B. $320 billion. C. $240 billion. D. $84 billion. E. $48 billion.
Which of the following is a characteristic of capitalism?
A. equality of income B. government decision-making is preferred to decentralized decision-making C. market determination of prices and quantity D. government ownership of all capital
If a monopolist lowers its price
A. the quantity demanded decreases. B. the quantity demanded increases. C. the quantity demanded remains the same. D. the quantity demanded becomes zero.