Intermediate goods are excluded from GDP because
A) their inclusion would involve double counting.
B) they represent goods that have never been purchased so they cannot be counted.
C) their inclusion would understate GDP.
D) the premise of the question is incorrect because intermediate goods are directly included in calculating GDP.
A
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Over a business cycle, the quantities of capital, human capital, and entrepreneurial talent
A) change gradually and do not fluctuate much. B) cycle alongside real GDP. C) are completely unpredictable and cannot be forecast. D) cycle more than real GDP. E) are constant and do not change.
Refer to the scenario above. If Alice values fairness, ________
A) she will not accept any offer made by Robert B) Robert should make the lowest possible offer to Alice C) she will accept the offer when Robert offers $250 D) Robert should not play the game
If the surplus in the capital account are greater than the deficit in the current account, then
a. the current account must be positive in the long-run. b. the current account must be negative in the long-run. c. exports must be less than imports. d. official reserve transactions must be negative.
Why did the Bretton Woods system ultimately break down?
A. The refusal of OPEC countries to accept payment for oil in gold. B. The refusal of surplus countries to devalue as required by law. C. An inability to devalue the U.S. dollar despite chronic payments deficits. D. An inability to adequately measure balance of payments surpluses and deficits.