Items that are purchased by individuals for their own enjoyment are called
A) consumption goods and services.
B) capital goods.
C) government goods and services.
D) exports of goods and services.
E) private goods.
A
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What is true of depletable resources is that
a. increasing scarcity leads to their total disappearance. b. they are depleted by gradually using up the supply of homogeneous resources, every unit of which is equally available. c. generally the most accessible and cheapest sources are used up so that new supplies become more costly. d. their prices must rise at the average rate of inflation.
In year 1 the CPI is 181, and in year 2 the CPI is 195. If Dennis's salary was $95,000 in year 1, what is the minimum salary he must earn in year 2 to "keep up with inflation"?
A) $112,500 B) $102,348 C) $105,750 D) $88,180
For most goods and services, income elasticity of demand tends to be smaller in the short run than in the long run. However, a recent study shows that the demand for a durable good such as automobiles tends to be more income-elastic in the short run than in the long run. Explain why.
What will be an ideal response?
Many economists argue that real GDP is NOT a good measure of economic well-being because
A. it includes the taxes we pay to the federal government. B. it excludes the environmental quality of life. C. it overvalues the increases in nonmarket transactions. D. it excludes Social Security payments made to retirees.