Suppose that in 2015 you paid $150,000 for a house that was built in 2005 and sold that year for $210,000 . The amount this transaction would add to the GDP in 2015 is
a. $0.
b. $60,000.
c. $210,000.
d. ?$60,000
a
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
In economics, the optimal level of pollution is
A) zero. B) the level for which the net benefit from reducing the pollution is greatest. C) the level for which the total benefit from reducing the pollution is greatest. D) the level which generates a positive externality.
The figure above shows the market for a good with an external benefit. If the government wants to grant a subsidy so that the efficient quantity is produced, the subsidy must equal ________ per unit
A) $100 B) $150 C) $250 D) $300 E) $50
The learning curve describes the ________ relationship between ________ and ________
A) inverse; unit cost; cumulative output B) direct; unit cost; cumulative output C) inverse; education; annual income D) direct; education; annual income E) direct; education; labor productivity