The relative concept of poverty is based on how far behind average income a particular family gets.

Suppose that the current price of oil is $60 per barrel and the quantity sold is 90 million barrels per day

The current estimates of the price elasticity of supply and demand are ? = 1 and ? = -.2 respectively. What will be the effects on the market price and quantity if the U.S. government suddenly decides to purchase an additional 2 million barrels of oil? Assume that the supply and demand curves are linear and the addition consumption of oil by the government results in a parallel shift of the supply curve to the left by 2 million barrels per day.

Gross domestic product (GDP) is a poor measure of social well-being because:

a. the value of leisure time is included in GDP accounting. b. the revenue earned through exports is ignored c. each dollar of government spending is valued at less than one-half of private spending. d. consumer spending is more important than business spending and should be considered more valuable. e. it values products at their market prices but ignores services produced.