During the current year, Jessica sold her house, built two years ago, to Kim for $175,000 . Kim then sold the house to Dave for $185,000 . How much does GDP increase due to these transactions?

The income distribution in less-developed nations tends to be

a. more uneven than in developed economies b. less uneven than in developed economies c. similar to that in developed economies d. impossible to calculate e. not comparable because tax structures differ among countries

If a good has a price elasticity of demand coefficient less than one, then:

a. this good has an elastic demand. b. this good has an inelastic demand. c. a 10 percent increase in the price will result in a greater than 10 percent decrease in the quantity demanded. d. the demand curve will be vertical.