Which of the following transactions would represent an addition to a nation's current gross domestic product?
A. Ms. Smith purchases a share of stock in an automobile company.
B. A retailer increases her stock of imported shoes.
C. The government increases its domestic purchases of food for use by the military.
D. A corporation sells shoes from last year's inventory.
E. A mother sells her car to her daughter.
Ans: C. The government increases its domestic purchases of food for use by the military.
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The share of the labor force that was unionized increased from approximately 10 percent in 1930 to more than 30 percent in 1955 . During these 25 years, the share of national income allocated to labor (in contrast to capital)
a. remained virtually constant. b. increased approximately 10 percent. c. increased between 15 and 25 percent. d. increased 17.6 percent.
Suppose that in 2020 the average citizen's federal tax bill is $12,466, and total federal spending is $10,824 per person. In 2020, the federal government will have
a. a budget surplus. b. a budget deficit. c. horizontal equity. d. vertical equity.