Which of the following accurately indicates how the recent outbreaks of terrorism have influenced the GDP of western nations?
a. Additional expenditures on security designed to protect individuals from terrorist attacks are subtracted from GDP.
b. Additional expenditures on security designed to protect individuals from terrorist attacks are added to GDP as part of output.
c. Since expenditures on the prevention of terrorism do not contribute to the well-being of individuals, they exert no impact on GDP.
d. Since terrorism is merely a redistribution of output, expenditures on the prevention of terrorism do not contribute to GDP.
B
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If seller increases the price of the good and the total revenue increases, this implies that the demand for the product is inelastic.
Answer the following statement true (T) or false (F)
One reason why producers have an incentive to organize in favor of protection is because
A) producer gains are spread across so many firms that no one gets a large share of the benefits. B) producer gains are relatively concentrated. C) there is no real cost to the economy. D) producer gains outweigh consumer losses. E) it is a cheap way to keep their employees happy.
A vertical aggregate supply schedule implies that
a. real wages cannot impact output. b. unemployment cannot impact output. c. aggregate demand is horizontal. d. the price level does not impact output.
If China's real GDP grew from $7 trillion one year to $8 trillion the next, the annual growth rate would be:
A. 14.3 % B. 87.5 % C. 114 % D. 12.5 %