A ten-year-old goes to a baseball convention this week and purchases a newly-autographed Barry Bonds baseball for $100. How would this affect GDP?
A) It wouldn't.
B) GDP would increase by $10—reflecting the market price of the ball itself.
C) GDP would increase by $90—reflecting the market price of Bonds' autograph.
D) GDP would increase by $100—reflecting the market price of the autographed ball.
E) GDP would have increased were the autographed ball purchased by somebody 16 years or older.
D
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Point D in the above PPF figure is
A) an attainable production combination with unemployed resources. B) a production combination that can be attained once resources are fully employed. C) an unattainable production combination. D) a tradeoff. E) More information is needed to determine which of the above answers is correct.
At a given point in time, if all past deficits and surpluses were added, we would get the
A. Ricardian model. B. debt. C. crowding-out model. D. total amount of excess burden.