Recall the Application about intellectual property in GDP accounts to answer the following question(s).From what we learned in the Application, explain how changing the classification of research and development from intermediate inputs to investment will affect the size of the country's GDP.
What will be an ideal response?
When research and development is classified as intermediate inputs, they are not included as part of GDP. Once we start counting research and development as part of investment, it is now counted as part of GDP. As a result, the country's GDP will increase after we made this change.
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If an individual discounts delayed utils with a weight of 1/4, the present value of 90 utils to be received after a year is:
A) 17.25 utils. B) 22.5 utils. C) 90 utils. D) 460 utils.
In the short run, firms can adjust all factors of production
a. True b. False Indicate whether the statement is true or false
The value of a euro goes from 1€ = US$1.25 to 1€ = US$1.50. In Germany, exports:
A. will increase, and imports will decrease. B. and imports will increase. C. will decrease, and imports will increase. D. and imports will decrease.
A monopolistic competitor is in long-run equilibrium when
A) economic profits are equal to zero and the average total cost curve is tangent to the demand curve. B) economic profits are equal to zero and the marginal cost curve is tangent to the demand curve. C) economic profits are greater than zero and the average total cost curve is tangent to the demand curve. D) economic profits are greater than zero and the marginal cost curve is tangent to the demand curve.