Suppose Best Buy, a US-owned company, purchases $750,000 worth of smartphones from Taiwan this year, selling $500,000 of them to U.S. consumers. How do these transactions affect U.S. GDP this year?

Chiara has a part-time job that pays $15 per hour. Instead of working for four hours, she decides to study for an upcoming exam. What is Chiara’s opportunity cost of studying?

Figure 5: Demand for turkey in the United States  Refer to figure 5.  All else equal, a large number of people becoming vegetarians would cause a move from

Figure 1: Inflation rate in Peru and U.S. (1980 – 2009)   Refer to figure 1. What can be implied from the evolution of the inflation rates in Peru and the U.S. in the sample period shown? (Hint: Remember the principles of economics. What generates inflation?)

Lexi buys and sells real estate. Two weeks ago, she paid $400,000 for a house on Pine Street, intending to spend $75,000 on repairs and then sell the house for $550,000. Last week, the city government announced a plan to build a new landfill on Pine Street just down the street from the house Lexi purchased. As a result of the city’s announced plan, she is weighing two alternatives: go ahead with the $75,000 in repairs and then sell the house for $380,000, or forgo the repairs and sell the house as it is for $300,000. Lexi should

Just like models constructed in other areas of science, economic models

Senator Maki argues that replacing the income tax with a national sales tax would increase the level of output. Senator Miller objects that this policy would benefit the rich at the expense of the poor.

A hypothetical country of KapociusLand produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is year 2.Table 4 Refer to table 4. In which year was KapociusLand’s real GDP highest?

Emerging political leader, Kaylee Dots, wins the general election and governs over two terms during 2057-2065. Table 3 below provides hypothetical economic data for 2057-2065, the years over which her policies are likely to be judged. Table 3 Refer to table 3. The inflation rate for 2058 and real GDP growth for 2059 are

In the circular-flow diagram, which of the following transactions does not take place in the markets for factors of production?