Related to the Economics in Practice on p. 429: If a Harley Davidson dealer in Chicago sells a newly manufactured Harley motorcycle on eBay to a customer in Tokyo, Japan, the value of the motorcycle is
A. not counted in U.S. GDP because it was sold to a foreign customer.
B. counted in Japanese GDP.
C. counted in U.S. GDP.
D. counted in U.S. GDP and Japanese GNP.
Answer: C
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Which of the following best represents total saving?
A) T - (G + TR) B) (Y - TR) + I C) (Y - C - G - NX) D) (Y + TR - T) + C
Which of the following is the best example of the "traditional process"?
A) commercial bank mergers B) minimum age limits for the purchase of alcoholic beverages C) auctioning U.S. Treasury bills D) colleges and universities give admissions preferences to children of alumni
Which statement is true?
A. On the production possibilities frontier there is zero unemployment. B. On the production possibilities frontier 95 percent of the labor force is employed. C. To get out of a recession, we must produce at some point beyond our production possibilities frontier. D. To have economic growth, we must push the production possibilities frontier inward.
If the price of Italian shoes imported into the United States increases, then
a. both the GDP deflator and the consumer price index will increase. b. neither the GDP deflator nor the consumer price index will increase. c. the GDP deflator will increase, but the consumer price index will not increase. d. the consumer price index will increase, but the GDP deflator will not increase.