When a firm sells a product out of inventory, GDP:
A) increases.
B) decreases.
C) is not changed.
D) increases or decreases, depending on the year the product was produced.
Ans: C) is not changed.
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Government may intervene in markets
a. to regulate firms like public utilities. b. directly, like creating a public service like the delivery of mail. c. indirectly, like planning an d funding multipurpose water projects that provide electricity, flood control and irrigation . d. All of the above are ways government may intervene in markets.
Higher interest rates
A. Raise the present value of future payments. B. Lower the future value of current dollars. C. Reflect a higher opportunity cost of money. D. Result in a higher risk premium.
What fraction of the world's population lives on no more than $2 a day?
A. 1/10 B. 1/4 C. 1/2 D. 3/4
A principal benefit of inflation is that it makes economic decisions easier.
Answer the following statement true (T) or false (F)