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The expression “There’s no such thing as a free lunch” means

Exhibit 7-4: Use the table below to choose the correct answer.   Government consumption and gross investment             $850 Employee compensation                                                     $3,200 Depreciation                                                                         $600 Gross private investment                                                    $800 Personal consumption                                                         $2,500 Gross exports                                                                       $50 Gross imports                                                                       $200 Indirect business taxes                                                        $300   Refer to Exhibit 7-4. Gross domestic product equals

If the dollar appreciates relative to the Yen, it can be said that

Forest Gump drinks Dr. Pepper. He can buy as many cans of Dr. Pepper as he wishes at a price of $0.50 per can. On a particular day, he is willing to pay $0.95 for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can. Assume Forest Gump is rational in deciding how many cans to buy. His consumer surplus is

Which of the following will contribute to GDP?

If waitresses and taxi drivers do not report all of their income to the government, GDP will be understated. This is because the unreported income

Rocky Balboa, a U.S. citizen from Philadelphia, travels to Moscow, Russia to fight Ivan Drago in a boxing match.  Rocky Balboa’s earnings from this boxing match

The value of money

If the consumer price index (CPI) was 125 at year-end of 2008 and 132.5 at year-end 2009, inflation during 2009 was

How would the Bureau of Labor Statistics classify a person who is not working and refuses an offer of employment in order to keep looking for a better job?