Answer the following statements true (T) or false (F)
1. If gross investment is positive, it means that firm (or the economy) is must be expanding.
2. Changes in business inventories are included as part of investment in the national income
accounts.
3.In an economy, the value of inventories fell by $50 billion from Year 1 to Year 2. In calculating
total investment for Year 2, national income accountants would increase it by $50 billion.
4. If the University of Missouri, a public school, builds a new laboratory, then it will be counted as
part of I g in GDP.
5. Government purchases are the largest component of aggregate expenditures in the United
States.
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
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A signal is
a. anything used to show employees in a market that demand in a profession has increased b. anything used to show employees in a market that supply in a profession has increased c. a proxy used to indicate possession of unobservable qualities required for a particular job d. a way for employers to discriminate against certain groups of people e. a way for employees to learn to stay out of certain professions
The maple-syrup production industry was severely affected by a devastating ice storm in January 1998 . Quebec, which produces 75 percent of the world's maple syrup, and northern Vermont and western Maine suffered catastrophic damage to their maple
trees. These trees will take years to recover. Explain how this storm will affect each of the following markets: a . maple syrup market b. market for Hungry Jack brand breakfast syrup (a corn syrup based product substitute) c. market for Sue Bee brand honey d. market for Eggo brand waffles