Answer:
a. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. - <u>Government Purchases</u> (G).
The Government purchases/ expenditure portion of GDP includes the expenses by Government on the economy. This expenditure by the Pennsylvania Government will therefore come under here.
b. Simone gets a new refrigerator made in the United States. - <u>Consumption (C)</u>.
Consumption accounts for spending by households and individuals in the economy. Simone lives in the US and buys goods in the US so this is Consumption.
c. Simone's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. - <u>Exports (X)</u>
Exports are goods made in a country which are then sold to consumers outside the country. Simone's father is in Sweden so buying an American product is an export for the United States.
d. Rajiv's employer upgrades all of its computer systems using U.S.-made parts. - <u>Investment (I).</u>
Investment refers to spending by private interests that are aimed to improve capital goods in the economy. Spending on upgrading computer systems therefore falls here.
e. Rajiv buys a sweater made in Guatemala. - <u>Imports (M)</u>
When a person buys a good that is made outside the country, this is an import.
The answer is A. Equipment
Law of supply and demand, increase, down, decrease
Answer:
inefficiencies
Explanation:
The competitive market is characterized by competition between companies for market share according to sales price. This is beneficial to the consumer, who will pay a lower price. The government acts as a market regulator to curb collusion and to ensure the origin and quality of products.
Critics of regulation complain that regulation removes market efficiency mechanisms, as companies have to comply with a series of regulatory criteria that raise production and marketing costs, which makes markets less efficient. This is a fragile argument, as history is full of cases of collusion and abusive practices that harm consumers. Regulation is necessary for companies to be compelled to always act in an appropriate manner. An example of the importance of regulation is the requirement for nutritional composition on food labels so that consumers have the information about what they are consuming.
