We measure GDP in different ways because
a. we can then check for errors and gain different insights into how the economy performs
b. certain economists do not like the expenditure approach for GDP
c. the expenditure equation ignores certain aspects of the economy
d. it is too difficult to determine accurate values of consumption and investment
e. the particular situations of different countries require different approaches
A
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A temporary adverse productivity shock would
A) shift the labor supply curve upward. B) decrease the level of employment. C) decrease future income. D) decrease the expected future marginal product of capital.
A prominent aspect of the Great Depression of the 1930s, but not of the recent Great Recession, is ________
A) bank panics B) mortgage defaults C) an increase in the credit spread D) nonconventional monetary policy
List and describe two issues regarding incentives and information that explain why the median voter model might not accurately describe democratic decision-making
What will be an ideal response?
Clint, Lee and Eli are the only three residents of the village of Fantasma. They are considering whether to construct a hiking trail in the mountains surrounding the village. Because congestion on the trail is unlikely, it would be nonrival. Clint values the trail at $300 per month, Lee values the trail at $100 per month, and Eli values the trail at $80 per month. The cost of building and maintaining the trail is $420 per month. If Clint proposes a tax whereby all three of them split the cost of the trail equally, then will the majority of them support this tax?
A. Yes, because building the trail is socially optimal. B. Yes, even though building the trail is not socially optimal. C. No, because building the trail is not socially optimal. D. No, even though building the trail is socially optimal.