Which of the following is not included in gross domestic private investment, as defined in national income accounts?
A. The value of all new capital goods bought by business firms
B. Changes to business inventories
C. Domestic home construction undertaken by and for the private sector
D. Government construction of new highways and dams
Answer: D
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Refer to the figure above. The triangular region ABC represents the ________
A) deadweight loss due to the presence of a pecuniary externality B) deadweight loss due to the presence of a negative externality C) economic loss of not recognizing a positive externality D) inefficiency created by not recognizing a negative externality
Since 1980, the female/male annual earnings ratio of full-time workers has been ____, while the labor force participation rate of women has been ____ during this same period
a. rising; declining b. rising; increasing c. falling; increasing d. falling; declining
If Brazil experienced a period of rapid and unexpected inflation, causing Brazilians to lose confidence in the local currency (real) as a store of value, which of the following would be least likely to occur?
a. The value of the Brazilian real would depreciate on the foreign exchange market. b. Foreign currency would be used as a substitute for the real. c. The real would be used as a store of value in other countries d. Brazilians would save less. e. The purchasing power of the real would decrease.
When the unemployment rate is less than the natural unemployment rate, real GDP is ________ than potential GDP and the output gap is ________.
A) smaller; negative B) smaller; positive C) greater; positive D) greater; equal to zero E) greater; negative