In the national income accounts, the purchase of a new house counts as
A) consumption expenditure.
B) investment.
C) a transfer.
D) an addition to inventory.
B
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Assume that, over time, engineers develop new residential furnaces that can run on different types of fuels, e.g., natural gas, electricity, propane, and fuel oil, simply by flipping a switch on the furnace
How would this technological change affect the price elasticity of demand for natural gas? Why?
If the money multiplier is approximated to be 10, it means:
A. banks create 10 dollars in deposits from each original deposit of a dollar. B. banks create approximately 10 times the amount of cash in the economy. C. the economy overall has 10 times the amount of deposits as existing cash. D. All of these are true.
Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the table below.Hours inEastOrchardNumber ofApples PerHourHours inWestOrchardNumber ofApples PerHour140110232210325310420410What is the marginal benefit to Frank of the 2nd hour he spends picking in the east orchard?
A. 64 apples B. 32 apples C. 8 apples D. 24 apples
The purpose of an effluent fee is to
A) reduce the amount produced of a good and to raise the market price. B) correct for pollution while keeping the price of the good the same as before the correction. C) reward people producing externalities. D) encourage producers to keep the quantity produced the same while lowering the price.