The reason that only final sales count in GDP is to
A. undervalue labor.
B. make it easier to do the accounting.
C. overvalue capital.
D. avoid double counting.
Answer: D
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If the economy were at full employment and is producing at point Y,
A. the unemployment rate would increase.
B. the unemployment rate would decrease.
C. the production possibilities frontier would have shifted inward.
D. the production possibilities frontier would have shifted outward.
Would it make sense to buy a house when mortgage rates are 14% and expected inflation is 15%? Explain your answer
What will be an ideal response?
Under Scenario 18.1, suppose the body of water lies on an international boundary, and the fishermen speak a different language than the factory managers. The efficient outcome cannot be achieved if the cost of hiring translators for both parties:
A) is less than $4,000. B) equals $5,000. C) is greater than $6,000. D) none of the above
In economic analysis marginal analysis is used to:
a. make an either-or decision. b. determine which costs are sunk costs. c. decide how much of something is the optimal amount. d. convince others that the costs of a certain activity do not matter