Recessionary gaps are most likely to be accompanied by
A. inflation.
B. inventory reductions.
C. unemployment.
D. expanding output.
Answer: C
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Why are transfer payments not included in GDP?
A) The amount is too low to have any effect. B) Unemployment varies and can't be tracked. C) Money companies receive from the government isn't reported. D) They do not represent payments to those who contributed resources to currently produced goods or services.
Which of these is an argument for using the potential compensation criterion?
a. If the winners can compensate the losers, no one is harmed by employing the criterion. b. The criterion does not employ interpersonal utility calculations. c. If employed over a large number of policy changes, everyone should enjoy a net gain in the long run. d. It is easy to determine the magnitude of the wins and losses.
Which of the following is a difference between monopoly and perfect competition?
a. Positive economic profits earned by perfectly competitive firms result in deadweight loss, while positive economic profits earned by a monopoly result in the production of a socially efficient output level. b. Positive economic profits earned by firms in a perfectly competitive market attract new firms into the market, causing profits to increase over time, while barriers to entry protect a monopolist's profits. c. Positive economic profits earned by a monopolist attract new firms into the industry, while barriers to entry protect profits of a perfectly competitive firm. d. Positive economic profits earned by firms in a perfectly competitive market attract new firms into the market, causing profits to decrease over time, while barriers to entry protect a monopolist's profits.
What is the mission of the World Bank?
What will be an ideal response?