The base for the purchasing power parity adjustment of the GNI is the cost of living in the United States.
a. true
b. false
Answer: a. true
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Economic development is distinguished from economic growth by:
a. accumulation of capital b. shifts in the structure of output c. higher per capita income d. improved standards of living e. all of the above
In the figure below, the value of insurance is $7,000.
A. True
B. False
C. Uncertain
One of the possible consequences of the expenditure schedule lying below the level of full employment GDP is
a. unemployment. b. rising prices. c. increasing production. d. decreasing inventories.
Markets may have difficulty providing the proper quantity of a public good because
a. individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good. b. the good generally has a very large value to consumers relative to its cost of production. c. the good is one that tends to benefit a large number of people. d. the large profit involved in the production of a public good is generally too much for private firms to effectively pay out to shareholders.