Category: Economics

Good 2016 Quantity 2016 Price 2017 Quantity 2017 PriceAvocados 550 $1.00 700 $1.20Butter 825 $5.00 1050 $5.25Cherries 900 $7.00 900 $8.00If 2016 is the base year, real GDP for 2016 is:

In Econland exports equal 25 percent of total output, while imports equal 20 percent of total output. Econland has a Multiple Choice trade surplus. budget deficit. trade deficit. budget surplus.

Because capital is subject to diminishing returns, higher savings and investment do not lead to higherincome in the long-run.income in the short-run.growth in the long-run.growth in the short-run.
higherincome in the long-run
income in the short-run
growth in the long-run
growth in the short-run

➤ How are purchases of new boats by firms recorded in national accounts?
Purchases of new boats by firms are recorded as gross private domestic investment, specifically nonresidential fixed investment or producer durable equipment. If a firm buys boats to rent, the expenditure increases business capital stock and current-period GDP. Depreciation and later services from renting are treated separately in subsequent national-account entries.

➤ How do business property taxes and license fees fit into taxes on production?
Business property taxes and license fees are classified as other taxes on production. Firms pay them for using land, buildings, or for operating permits. The national accounts record these payments as production expenses that raise the cost of producing goods or services, for example, a factory property tax or annual commercial license fee.

are regulatory agencies, such as the SEC (Securities and Exchange Commission), that establish ground rules under which organizations may operate.
Question 16 options:
a Whistle-blowers
b

Stay with the market Kellogg’s breakfast cereal.
What happens to the supply of Kellogg’s breakfast cereal as heavy rains flood US corn fields?
It increases.
It decreases.
It remains unchanged.

If food is on the vertical axis and shelter on the horizontal axis, then, by convention, the budget line must satisfy the following equation:
Multiple Choice
PsS+PfM=S .
MPs=S .
PsF+PfS=M .
PsS+PfF=M .