Spending on new housing, which economists refer to as residential fixed investment, is included in the consumption expenditures component of GDP
Indicate whether the statement is true or false
FALSE
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GDP tends to underestimate the productive activity in the economy because it excludes the value of output from ________.
A. the consumption of fixed capital B. intermediate goods C. public transfer payments to households D. the underground economy
When a nation exports a good or service, the nation's consumer surplus ________, its producer surplus ________, and its total surplus ________
A) increases; decreases; increases B) increases; decreases; decreases C) increases; increases; increases D) decreases; decreases; decreases E) decreases; increases; increases
The national debt
a. exists because of past government budget deficits b. is the difference between the government's spending and revenue in a given year c. is the amount households owe on credit cards, mortgages and other loans d. is a flow variable e. is the same as the government's budget deficit
In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?
a. Markets must be segmentable, identifying differences in ability-to-pay. b. Demand for services must be relatively price elastic. c. Profitable service expansion opportunities must be limited. d. Customers cannot know that different prices are being charged. e. The provider must have excess capacity to accommodate the extra business.