In the simple circular-flow diagram, with households and firms, GDP can be computed
a. as the income received by households, in the form of wages, rent and profit.
b. as the income received by households in the form of wages
c. as the payments made by firms for labor.
d. as the profits received by households.
a
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What is the main rationale economists provide for assigning government the responsibility of protecting people against foreign aggressors?
A) It would be too dangerous to allow citizens to keep and bear arms for the purpose of forming militias to defend their communities. B) Most people are patriotic only when the government is involved. C) "National defense" must by necessity be nationalized. D) People will not risk their lives unless government requires them to do so. E) Private providers could not exclude non-payers from the benefits.
A statistical tool used to measure inequality is
A) the absolute poverty rate. B) the relative poverty rate. C) the Lorenz curve. D) the Gini coefficient.
A large and growing current account deficit can be an indicator of a potential crisis
Indicate whether the statement is true or false
The Hart-Scott-Rodino Act of 1980:
A. extended antitrust legislation to proprietorships and partnerships. B. made it legal to monopolize a market. C. outlawed asset-purchase mergers that would substantially reduce competition. D. outlawed price discrimination for the purpose of reducing competition.