Through specialization and international trade, a nation
What will be an ideal response?
can attain some combination of goods lying outside its production possibilities curve.
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Which of the following is directly accounted for in the calculation of GDP?
A) the value of one hour of leisure as measured by the hourly wage one would otherwise earn by working B) the value of repairing your own kitchen sink as measured by the average rates charged by local plumbers C) cash earnings from an illegal poker game D) improvements in quality of life from the reduction of pollution E) None of the above items is accounted for in GDP.
Commodity egalitarianism suggests that some goods be available to everyone.
A. True B. False C. Uncertain
Capital, labor, and land
a. have derived demands. b. are factors of production. c. are inputs used in the production of goods and services. d. All of the above are correct.
Starting from short-run equilibrium, the following occurs: individuals expect higher (future) incomes and wage rates rise. What is the effect on the price level and Real GDP in the short run?
A) The price level rises and Real GDP rises. B) The price level falls and Real GDP falls. C) The price level rises, but the effect on Real GDP cannot be determined. D) Real GDP rises, but the effect on the price level cannot be determined. E) Real GDP falls, but the effect on the price level cannot be determined.