Which of the following would not be included in the gross private domestic investment (I) category of GDP?
a. A bakery's purchase of a new oven.
b. A retailer's additions to its inventories.
c. Newly built residential construction.
d. A bank's purchase of a U.S. Treasury bond.
d
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A black market for housing exists because of a rent ceiling. The rent for housing in the black market is
A) the same as the equilibrium rent. B) lower than the ceiling rent. C) somewhere between the ceiling rent and the maximum rent a tenant is willing to pay. D) somewhere between zero and the equilibrium rent. E) not defined because the market is not legal.
If property rights are not enforced in a country,
A) entrepreneurs are unlikely to risk their own funds investing in such an economy. B) that country's growth rate will not be affected. C) the market system will still work smoothly. D) that country will grow more rapidly because of the reduction of law suits.
To economists, a game is:
A. any situation in which players pursue strategies designed to achieve their goals. B. a trivial pursuit that should not be used to analyze the economy or its actors. C. a way to simplify and minimize the true importance of situations like war. D. All of these statements are true.
Behaving strategically means:
A. evaluating decisions in which players act in their own self-interest, but the interplay of those decisions does not exist. B. acting to achieve a goal by withholding key information from the person with whom an exchange is being made. C. acting to achieve a goal by anticipating the interplay between your own and others' decisions. D. evaluating the impact of your choices on an uninvolved third party.