Refer to Table 8-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals

While the budget deficit represents a ________, the public debt represents a ________

A) flow; flow B) stock; flow C) flow; stock D) stock; stock

Which of the following is an example of a positive externality?

A) banning the sale of junk food on Sundays B) living next door to a dairy farm C) purchasing a pinball machine for your game room D) planting trees along a sidewalk which add beauty and create shade

Which of the following would not cause the supply curve for gasoline to shift?

A) A change in the wages paid to gas station attendants. B) A change in the number of gas stations. C) A change in the incomes of drivers. D) A change in the cost of refining oil.

If the unemployment rate rises because the number of people not working but searching for work rises, economists would attribute this to the

A. discouraged worker effect. B. fallacy of composition. C. encouraged worker effect. D. none of the options are correct.