Determine whether each of the following outputs is considered an intermediate good, a final good, or neither for purposes of calculating GDP in the current year
a. New tires put on a new Corvette at Big O Tire store
b. The net sales price of a home built in 1990 when it is resold in 1997
c. The commission earned by a stock broker on the sale of stock
d. The net price that is paid for 1000 shares of stock in Dell
a. Final
b. Neither
c. Final
d. Neither
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Producer surplus definitely exists when the
A) price exceeds marginal benefit. B) price exceeds marginal cost. C) marginal cost exceeds the price. D) marginal benefit exceeds the price. E) marginal benefit exceeds the marginal cost.
In an effort to balance the budget, the government cuts spending rather than increasing taxes. What will happen to the consumption schedule?
a. It will become steeper. b. It will become flatter. c. It will shift upward. d. It will shift downward. e. It will remain the same and move along it.