The sale of __________ goods is omitted from current GDP because __________
A) intermediate goods; these goods do not constitute production
B) used goods; these goods were counted in an earlier year
C) illegal; these goods do not constitute economic value
D) b and c
E) a, b, and c
B
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The three welfare goals: adequate income, work incentives, and minimize costs are irreconcilable
Indicate whether the statement is true or false
At the point where the disposable income line intersects the consumption function, saving:
a. equals consumption. b. equals disposable income. c. is less than zero. d. is equal to zero.
When economic profits are negative in a perfectly competitive industry,
a. we would expect the market supply curve to shift to the left as a result. b. we would expect the market supply curve to shift to the right as a result. c. we would not expect any change in the market supply curve to result. d. we would expect that the market demand curve to shift left as a result
Figure 11-1
The Red Cross is virtually the only operator of blood banks in the United States. In Figure 11-1 are the demand and cost curves facing the Red Cross blood bank. If the Red Cross were to set price and quantity at the level that it would obtain in the long run in a competitive industry, how much blood would it sell?
A. OA B. OB C. OD D. OC