Jason and Julie are gardeners. Jason grows corn and Julie grows tomatoes. Every week they trade: Jason gives Julie a bushel of corn in exchange for half a bushel of tomatoes. Is Jason's bushel of corn counted as part of GDP? How would your answer change if Julie bought Jason's corn for $10 at the local farmers' market?
When Jason and Julie exchange corn and tomatoes, Jason's corn never appears on the market. This
unreported production is not counted in GDP. If Julie bought the corn at the local farmers' market, it would
be counted in GDP as part of consumption expenditures.
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Andrew is not working, but is available and willing to work after finishing a month-long mission trip for his church. While on his mission, Andrew did not look for work. Andrew is considered
A) unemployed. B) part of the labor force. C) a marginally attached worker. D) a discouraged worker. E) Both answers A and B are correct.
Exhibit 15-2 Production possibilities curves for U.S. and Mexico
As shown in Exhibit 15-2, the United States has a comparative advantage over Mexico in:
A. wheat, but not in cloth. B. cloth, but not in wheat. C. both wheat and cloth. D. neither wheat nor cloth