The Patersons bought a home that was newly constructed in 2007 for $275,000 . They sold the home in 2015 for $255,000 . Which of the following statements is correct regarding the sale of the house?
a. The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP.
b. The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP.
c. The 2015 sale increased 2015 GDP by $255,000; and caused 2007 GDP to be revised downward by $20,000.
d. The 2015 sale affected neither 2007 GDP nor 2015 GDP.
d
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Minimum wage laws:
A) can cause the quantity demanded to exceed the quantity supplied of labor. B) are used to solve the problem of wage rigidity. C) can give rise to wage rigidity. D) help in equating the quantity of labor demanded and supplied.
Marginal utility is _____
a. always greater than total utility b. utility that is not as good as normal utility c. the extra utility derived from consuming one additional unit of a good or service d. always positive e. not related to total utility
When the effects of a more expansionary macroeconomic policy are quickly and accurately anticipated, the policy will
a. increase inflation without reducing unemployment. b. increase unemployment while exerting little impact on inflation. c. decrease unemployment while exerting little impact on inflation. d. fail to exert a significant impact on either unemployment or inflation.
Consider a hypothetical economy in which only computers and shoes are produced. If two resources are being used, labor and capital, then any increase in immigration in the long run:
a. will decrease wages in the shoe industry. b. will decrease wages in the computer industry. c. will increase wages in the shoe industry. d. will keep wages constant because marginal products do not change.