1. Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly. a. The largest component of GDP is consumption. b. Government spending, including transfers, was equal to 18.1% of GDP in 2014. c. The propensity to consume has to be positive, but other- wise it can take on any positive value. d. One factor in the 2009 recession was a drop in the value of the parameter c0. e. Fiscal policy describes the choice of government spend- ing and taxes and is treated as exogenous in our goods market model. f. The equilibrium condition for the goods market states that consumption equals output. g. An increase of one unit in government spending leads to an increase of one unit in equilibrium output. h. An increase in the propensity to consume leads to a de- crease in output.

Which of the following is most likely to lead to a general decrease in wages? a. elastic demand b. public goods c. an economic recovery d. immigration 2b2t

Allie and sarah decided that they want to purchase renters insurance for the apartment they share. they made a list of all of the items to be covered by the insurance policy, along with their estimated values. if the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. if the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items.

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.