Answer the following statements true (T) or false (F)
1. The GDP excludes the production of services for which no monetary transaction takes place.
2. Corporate profits are included in national income but not in personal income.
3. Interest payments are included in national income but not in personal income.
4. Gross national product measures the current market value of final output produced within a country by both domestic and foreign resources.
5. The GDP implicit price deflators take into account price changes, as well as some changes in the quality of various products.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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When external benefits are present,
A) competitive markets are efficient. B) competitive markets are inefficient. C) a tax is required to eliminate the inefficiency. D) property rights have already been established.
If Irv Goffman gets an $800 loan from the Durham National Bank and pays Alice Irby $800 to landscape his property, and she takes that $800 check from Irv and deposits it in the same Durham National Bank, then, with the legal reserve requirement of 20 percent
a. Durham National Bank will get $640 in new reserves b. Durham National Bank will have an additional $800 in demand deposits c. assets of the Durham National Bank will increase by $640 d. assets of the Durham National Bank will decease by $640 e. liabilities of the Durham National Bank will increase by $160
Explain the circumstances under which some component of labor income is economic rent.
What will be an ideal response?
________ unemployment measures those out of work during the off-season, such as those employed in snow- or beach-related industries, agriculture, and/or holiday activities.
A) Seasonal B) Frictional C) Structural D) Cyclical E) Temporary