In a closed economy, which of the following equations reflects investment? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y - C - G
B) Y - C - T
C) Y - T + TR
D) C + G -T
Answer: A
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Which of the following people would be counted as employed?
a. A retired naval officer b. A high school student c. A stay-at-home father d. A teenager who has given up looking for work after a year of trying e. A ski instructor who is working during the summer
Which of the following is not included in the rules of the game?
a. The laws, customs, conventions, and other institutional elements associated with trade b. Property rights c. Ensuring that the market process generates a fair price for all d. A stable political environment e. A stable legal system
Empirical studies suggest that as real GDP per person increases the level of pollution:
A. first increases then decreases. B. increases. C. decreases. D. remains constant.
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The marginal product of the second worker is
A. 3. B. 4. C. 5. D. 9.