How does the income approach measure GDP?
What will be an ideal response?
The incomes approach adds the compensation of employees, net interest, rental income, corporate profits and proprietors' income to give net domestic income at factor cost. Then indirect taxes and depreciation are added. Finally, subsidies are subtracted to obtain GDP.
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Why does the problem of the big tradeoff arise when the government engages in the process of redistributing income using taxes and transfers?
What will be an ideal response?
Policies which promote improvements in health for a society are central to:
A. economic development. B. rising health care costs. C. government deficit spending. D. government monetary policy.
Figure 7-10
depicts a demand curve with a price elasticity that is
a.
unitary, implying that a percent change in price leads to an equal percent change in quantity demanded.
b.
perfectly inelastic, implying that the same amount will be purchased regardless of the price of the good.
c.
equal to zero.
d.
both b and c.
Tariffs on imported coffee will result in all of the following except:
A. Higher prices for imported coffee. B. Higher prices for domestic coffee. C. Gains for workers in the domestic coffee industry. D. Gains for workers in the foreign coffee market.