Which of the following circumstances would cause current GDP to overstate economic well-being in comparison to 60 years ago?
A. An increase in the total output per person
B. An increase in military expenditures
C. An increase in welfare payments
D. The trend toward a shorter work week
Answer: B. An increase in military expenditures
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The evidence available suggests that the effects of devaluation appear to differ across countries and time so that no strong generalizations regarding the effects of devaluation on the balance of trade and/or balance of payments are possible
Indicate whether the statement is true or false
In using the Internal Rate of Return approach, one must first calculate the discount rate on the investment that makes
A) the net present value equal zero. B) the interest rate equal zero. C) the interest rate equal the discount rate. D) the first year's return positive.
Opportunity cost can always be measured in money terms.
Answer the following statement true (T) or false (F)
The burden of a tax falls entirely on buyers if ________
A) the price elasticity of demand is zero (perfectly inelastic) B) the price elasticity of demand is greater than 1 C) the income elasticity of demand is high D) the price elasticity of supply is unitary elastic