Which one of the following is NOT included in GDP?
A. You volunteer to organize a neighborhood watch group on your block.
B. A mail-order firm constructs a new warehouse in Kansas as a central distribution facility.
C. You pay your monthly apartment rent.
D. The federal government pays a defense contractor to develop a new weapons system.
Answer: A
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The economist who won the Nobel Prize in Economics for his path-breaking analysis of the ways in which property rights, transaction costs and institutions affect the allocation of economic resources is:
A. John Nash. B. Arthur Cecil Pigou. C. Ronald Coase. D. Theodore Groves.
Discrimination has no impact on the total output of goods and services
Indicate whether the statement is true or false
Economic activity moves from a trough into a period of ________ until it reaches a ________ and then into a period of ________.
A. expansion; peak; recession B. recession; peak; expansion C. expansion; trough; recession. D. recession; trough; expansion
Because marginal cost is always ________ in the short run, total variable cost always ________ when output decreases.
A. negative; increases B. negative; decreases C. positive; increases D. positive; decreases