A tire manufacturer produces 400 tires valued at $20 each. Three hundred tires are sold to a tire shop, which then sells them to households for $50 each. The remaining tires are unsold and are added to the tire manufacturer's inventory. How much is added to GDP?
a. $8,000
b. $15,000
c. $17,000
d. $13,000
c
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Which of the following is true?
A) The supply of credit and labor demand are positively correlated. B) The supply of credit and the quantity of real output are unrelated. C) The supply of credit and the quantity of real output are positively correlated. D) The supply of credit and labor demand are negatively correlated.
An increase in the supply of a good will cause
a. a decrease in equilibrium price and an increase in equilibrium quantity. b. an increase in equilibrium price and quantity. c. an increase in equilibrium price and a decrease in equilibrium quantity. d. a decrease in equilibrium price and quantity.
The __________ school of economics holds that lower tax rates and less government intervention in the private sector are the only ways to stimulate saving, investment, and productivity.
Fill in the blank(s) with the appropriate word(s).
An economic model is a:
A. realistic version of an economic environment. B. detailed version of an economic issue. C. fictional representation of an entire economy. D. simplified representation of an economic environment.