Which of the following is one of the functions of rental prices?
A. to ration the use of existing housing for current consumers
B. to signal to the local government when taxes on rental units should be increased
C. to redistribute income from renters to landlords
D. to redistribute income from landlords to renters
Answer: A
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How many quarters (3-month periods) must the "real" GDP decline to have the economy considered to be in a recession?
A) 1 B) 2 C) 3 D) 4
Suppose the government designates certain areas within a community to be "wetlands," making it illegal to build on the land. What happens to land not classified as "wetlands" within the community? (i) The price of non-wetland land will rise. (ii) The marginal product of non-wetland land will fall. (iii) The marginal product of non-wetland land will rise
a. (i) and (ii) only b. (ii) only c. (i) and (iii) only d. (iii) only
If foreign citizens earn less income in the U.S. than U.S. citizens earn in foreign countries,
a. U.S. net factor payments from abroad are positive, and its GDP is larger than its GNP. b. U.S. net factor payments from abroad are positive, and its GNP is larger than its GDP. c. U.S. net factor payments from abroad are negative, and its GDP is larger than its GNP. d. U.S. net factor payments from abroad are negative, and its GNP is larger than its GDP.
The Index of Leading Indicators
A. is the most widely used forecasting tool of economic fluctuations in the U.S. economy. B. consists of ten economic indicators that tend to lead general economic activity. C. is comprised monthly by the Conference Board, a private business group. D. is a useful tool when used with caution. E. all of the choices are correct.