When we measure GDP by income, production, or spending, one is certain to be larger than the others.
a. true
b. false
Answer: b. false
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Producer surplus is the ________ summed over the quantity produced
A) price of the good minus the marginal cost of producing it B) marginal benefit of the good minus its marginal cost C) marginal benefit of the good minus its price D) marginal cost of the good minus the opportunity cost of producing it E) None of the above answers is correct.
With the creation of the Federal Deposit Insurance Corporation, member banks of the Federal Reserve System ________ to purchase FDIC insurance for their depositors, while non-member commercial banks ________ to buy deposit insurance
A) could choose; were required B) could choose; were given the option C) were required, could choose D) were required; were required
In a market where the price is restricted by price floors or price ceilings,
a. all sellers will be able to sell everything they produce. b. surpluses and shortages will exist. c. all buyers will get what they want. d. disequilibrium will automatically correct itself. e. surpluses and shortages will put pressure on the price to move to its equilibrium.
Robinson Crusoe is stranded on an island. He finds that coconuts are freely available (zero harvest cost), but fish are difficult to harvest and require a lot of energy. As a result, harvesting fish has a high price. If coconuts and fish are imperfect substitutes, what is Robinson Crusoe likely to consume?
A) He will consume more coconuts than fish. B) He will consume more fish than coconuts. C) He will consume equal amounts of both goods. D) Not enough information is given.