Consider the economic impact of Hurricane Florence in 2018. Which of the following statements is correct?
A. Spending toward reconstruction would lead to an increase in GDP.
B. Increased government spending on relief efforts in the United States would decrease GDP.
C. Damaged buildings and looting would lead to a decrease in GDP.
D. U.S. well-being improves the more reconstruction efforts are needed, following the decline in GDP.
Answer: A
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What must be done to net domestic product at factor cost in order to transform it to gross domestic product? Explain why these adjustments are necessary
What will be an ideal response?
Which of the following are TRUE regarding the argument that trade barriers protect U.S. workers from cheap foreign labor? I. Low-wage foreigners are just as productive as U.S. workers. II. U.S. workers have a comparative advantage in low-wage jobs
A) I only B) II only C) I and II D) Neither I nor II is correct.
A country in which a substantial amount of the factories and stores that produce domestic goods and services are foreign-owned is most likely a country in which
A) GDP is much larger than GNP. B) GNP is much larger than GDP. C) GDP is roughly equal to GNP. D) the relationship between GDP and GNP no longer exists.
To be counted in the labor force
A) a person has to be working at least 40 hours per week. B) a person has to be at least 16 or older, have a job, or if unemployed has to be actively seeking employment. C) a person, irrespective of his or her age, has to be working or, if out of work, actively seeking employment. D) a person has to be over 16 years of age, irrespective of whether she or he is actively seeking work.