Which of the following transactions adds to U.S. GDP for 2015?
a. In 2015, Ann sells a car that she bought in 2011 to Bill for $7,000.
b. An American management consultant works in Canada during the summer of 2015 and earns the equivalent of $40,000 during that time.
c. When Ken and Kim were both single, they lived in separate apartments and each paid $800 in rent. Ken and Kim got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,700 per month.
d. None of the above transactions adds to U.S. GDP for 2015.
Ans: c. When Ken and Kim were both single, they lived in separate apartments and each paid $800 in rent. Ken and Kim got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,700 per month.
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Economics is concerned with: a. the choices people must make because resources are scarce
b. human decision makers and the factors that influence their choices. c. the allocation of limited resources to satisfy unlimited wants. d. all of the above.
The United States 2007 Gross-Public-Debt to GDP ratio is
a. similar to the ratios in most of the OECD countries b. considerably higher than it is in most OECD countries c. considerably lower than it is in most OECD countries d. considerably higher than it was in 1990 e. considerably lower than it was in 1990
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). According to this Application, the prices which were tracked in the retail catalogs exemplified the macroeconomic concept of the short run, a period of time in which:
A. price changes are significant because the aggregate supply curve is vertical. B. prices never change because the aggregate demand curve is vertical. C. prices change frequently because of changes in aggregate supply. D. prices don't change very much, implying that the aggregate supply curve is relatively flat.
If velocity is equal to 1, this means that
A. each dollar of the money supply is spent on the average one time per year. B. an increase in the money supply will lead to an increase in aggregate supply of 1. C. for every 2 dollars of the money supply, nominal Gross Domestic Product (GDP) will increase by 1. D. the rate of growth of the money supply is 1.