QUESTION

Which of the following would not directly increase US GDP?

A) Avis Rent-a-Car purchases a van made by a (Japanese-owned)Toyota plant in Tennessee.

B) Ford manufacturers a car in Michigan which is then sold in Canada.

C) A student with Korean citizenship purchases a hamburger from a restaurant in Boston,MA.

D) An HBS student with U.S.citizenshipstudying abroad in Spain produces and sells jewelry at a shop in Madrid.

QUESTION

Given the following information,calculateprivatesavings:

Income = 4,200

Consumption = 3,000

Government spending = 1,000

Taxes =800

A) 400

B) 1,200

C) 200

D) 2,400

QUESTION

Suppose the Economy uses 25 units of Capital and 16 units of Labor. Given the following Cobb-Douglas production function, what is the real wage in the economy? Y = K^0.5L^0.5

A) 0.625

B) 20

C) None of the given answer choices are correct.

D) 10

E) 0.4