Exhibit 5-10 GDP data (billions of dollars)
Indirect business taxes$ 600
Depreciation950
Change in business inventories50
Compensation of employees5,400
Corporate profits700
Durable goods600
Exports100
Social Security taxes360
Transfer payments300
Fixed investment950
Government spending800
Imports150
Net interest500
Nondurable goods2,000
Personal taxes1,000
Rental income200
Services4,000
In Exhibit 5-10, GDP calculated using the income approach,
A. is greater than GDP calculated using the expenditure approach.
B. is equal to GDP calculated using the expenditure approach.
C. is less than GDP calculated using the expenditure approach.
D. is unrelated to GDP calculated using the expenditure approach.
Answer: B
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Which of the following is not a determinant of an individual's marginal product?
A) talent B) money income C) experience D) educational level
Which of the following is an example of perfect competition?
A.) One large firm supplies the entire product to the market. B.) Two firms supply the entire market and compete with each other for customers. C.) Many small firms all produce the same good. D.) Many firms supply similar products, but each has significant brand loyalty.
Exhibit 2-18 Production possibilities curves
In Exhibit 2-18, a country is located at point A on its Year X production possibilities curve. In Year Y this same country is located at point B on its Year Y production possibilities curve. Which of the following could have brought about this outward shift in production possibilities curves?
A. More efficient production in Year X. B. A natural disaster in Year X which leads to a destruction of resources. C. Higher unemployment in Year X. D. An advance in technology occurred in Year X.
Experience ratings provide firms with an incentive to:
A. hire older workers. B. invest in health and safety programs. C. hire disabled workers. D. None of these