New home construction is included in the consumption component of GDP
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Table 18.1. Russia has a comparative advantage in
A) gloves. B) hats. C) both hats and gloves. D) neither hats nor gloves.
When the price of broccoli increase relative to cauliflower, people who buy fresh vegetables respond by buying more cauliflower and fewer broccoli. As a result, the CPI has
A) a quality change bias. B) a new price bias. C) a commodity substitution bias. D) an outlet substitution bias. E) a new goods bias.
The new growth theory asserts that
A) eventually people earn only a subsistence living. B) a discovery can be used by only one person, the discoverer. C) technology improves slowly while population grows rapidly. D) production processes can be replicated at many different firms in the economy. E) the population growth rate will increase when real GDP per person increases.
Which of the following provides young people with a strong incentive to make regular payments into a retirement program and invest these funds in a diverse set of stocks?
A) The prices of stocks tend to fluctuate more than the prices of bonds. B) When held over lengthy periods like 30 or 40 years, historically the rate of return on stocks has been both higher and less variable than that of bonds. C) Over short periods of time, variation in the real rate of return of stocks is greater than bonds. D) Lower interest rates will lead to higher