3. GDP excludes: A) the market value of unpaid work in the home. B) the producti

Question

3.      GDP excludes:
A) the market value of unpaid work in the home.
B) the production of services.
C) the production of nondurable goods.
D) positive changes in inventories.

                       7.    "Economic growth" has occurred if the

      A) inflation rate between this year and last year is zero or less.

      B) GDP this year exceeds the Real GDP this year.

      C) unemployment rate this year is above the natural rate of unemployment.

      D) Real GDP or per-capita Real GDP this year exceeds those of last year.

      8. If the marginal cost of producing an iPad is constant at $65, then Apple should produce this item

     A) only if the marginal benefit it receives is greater than $65 plus an acceptable profit margin.

     B) as long as the marginal benefit it receives is just equal to or greater than $65.

     C) as long as its marginal cost does not rise.

     D) until the marginal benefit it receives reaches zero.

     9. Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. This would

     A) increase the measured unemployment rate.

     B) increase the measured labor force participation rate.

     C) decrease the number of persons in the labor force.

     D) decrease the number of persons in the working-age population.

                 10. Suppose consumption increases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________.

A) increases; leftward

B) decreases; leftward

C) increases; rightward

D) decreases; rightward

11. Short run equilibrium exists

A) where the AD curve intersects the short-run aggregate supply (SRAS) curve.

B) where the AD curve intersects the long-run aggregate supply (LRAS) curve.

C) on the AD curve only.

D) on the SRAS curve only.

                 12. Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.75, then we know that

A) as Yd rises by $1, Co rises by $0.75.

B) as Yd rises by $1, C rises by $0.75.

C) Yd rises by $0.75.

D) as C0 rises by $0.75, Yd rises by $1.

Explanation / Answer

7 D

8 B

9 C

10 C

11 A

12 B

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.