One way to avoid counting the prices of intermediate goods multiple times in computing the value of GDP is to:
A. sum the value added of only producers of final goods and services.
B. sum the value added of producers of both intermediate and final goods and services.
C. sum the value added of only producers of intermediate goods and services.
D. subtract the value added of producers of intermediate goods and services from the value added of producers of final goods and services.
Answer: B
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College students and faculty members have a more elastic demand than the general public for Apple's iMac desktop computers. From this we can conclude that
A) Apple will earn economic profits from the computers it sells to the general public but will break even on the computers it sells to college students and faculty members. B) Apple will charge college students and faculty members lower prices than it charges the general public. C) the general public will earn arbitrage profits by buying iMac desktop computers from Apple and reselling them to college students and faculty members. D) Apple will charge college students and faculty members higher prices than it charges the general public.
If the consumption function is defined as C = 7,250 + 0.8Y, what is the multiplier?
A) 0.2 B) 0.8 C) 1.25 D) 5