Tom is an organic gardener. For several years, he produced only for his own consumption, but this year he has sold his vegetables at a farmer's market. The vegetables Tom produces
a. are not included in GDP, not for this year nor for previous years
b. are included in GDP for this year, but prior to this year the value of his vegetables was not included in GDP.
c. would be included in GDP only if the vegetables were registered with the Department of Agriculture.
d. are not part of GDP, since vegetables are not a good included in GDP.
b
You might also like to view...
A crucial difference between the impact of an import quota compared to a tariff is that:
a. import quotas generate revenue to the domestic government, but tariffs do not. b. import quotas generate no revenue to the domestic government, but tariffs do. c. tariffs increase the prices paid by domestic consumers, but quotas do not d. both (a) and (c)
Suppose the money market is in the liquidity trap and the Fed increases the supply of money. We expect that
A) people will end up willingly holding more money. B) the excess money holdings will flow into the loanable funds market and there will be a decrease in interest rates. C) interest rates will increase, since the demand curve for money is upward sloping in this case. D) eventually, via the transmission mechanism, Real GDP will increase.
Suppose you are the manager of a local water company, and you are instructed to get consumers to reduce their water consumption by 10 percent. If the price elasticity of demand for water is 0.25, by how much would you have to raise the price of water?
A. 10 percent B. 25 percent C. 40 percent D. 100 percent
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.