The growth of GDP may understate changes int he economy's well-being over time if the:
What will be an ideal response?
Quality of products and services improves
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Costs as measured by accountants generally does not include
A) any of the opportunity costs of the firm. B) any measure of depreciation. C) the economic depreciation of the firm's equipment. D) any rental rates.
If the percentage increase in the quantity supplied is smaller than the percentage increase in the price, the supply:
A. is elastic. B. is inelastic. C. is perfectly elastic. D. is unit elastic.
Which statement is false?
A. The spreading use of electricity during the 1920s helped create rapid economic expansion in that decade. B. The stock market rose very rapidly in the late 1920s. C. Between 1921 and 1929 national output rose by 50 percent. D. None of the statements are false.
When there is a reserve requirement, banks
a. must hold exactly the required quantity of reserves. b. may hold more than, but not less than, the required quantity of reserves. c. may hold less than, but not more than, the required quantity of reserves. d. must seek the Fed's permission whenever they wish to expand or contract their loans to customers.