Suppose you volunteer to help clean up your neighborhood, and the only payment you receive is the sense of goodwill that develops with your neighbors. Your efforts cause the GDP of the economy to
A. Fall by the opportunity cost of the time you spend doing volunteer work.
B. Rise by the opportunity cost of the time spent by all of the people in the neighborhood on the volunteer project.
C. Rise by the value of increased cleanliness of the neighborhood.
D. Remain unchanged.
Answer: D
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If currency depreciates:
a. net exports rise and the aggregate demand curve shifts inward b. net exports rise and the aggregate demand curve shifts outward c. net exports fall and the aggregate demand curve shifts inward d. net exports fall and the aggregate demand curve shifts outward
Which of the following statements is true?
A) Oil is classified as part of the resource category land. B) A person working for a company is classified as part of the resource category capital. C) A machine in a factory is classified as part of the resource category land. D) A person with the particular talent for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things is classified as part of the resource category labor. E) a and d