What is the main conceptual difference between GDP and GNP? How different are GDP and GNP for the United States? For countries with many citizens who work abroad?
What will be an ideal response?
GDP represents output produced within a country, while GNP represents output produced by a country's factors of production; the difference is net factor payments from abroad. For the United States there's little difference, but for countries that have many citizens working abroad, there may be a big difference.
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In the short run, ________
A) cost push shocks can cause firms to raise prices B) workers pushing for higher wages may lead to increases in inflation C) the aggregate supply curve may shift to the left with increases in expected inflation D) all of the above E) none of the above
Export-led growth policy involves:
A. favoring industries that export goods over those that only produce domestically consumed goods through high tariffs. B. investing heavily in industry through tax breaks and export subsidies with the aim of selling goods around the world. C. encouraging private investment in industries that currently export goods, rather than those expanding domestically. D. discouraging imports with high tariffs.
Which of the following best defines positive externalities?
a. Beneficial spillovers to a third party b. Monetary benefits to stakeholders c. Dollar values of societal benefits d. Rates of return for innovators
Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10. This firm is:
A. making an economic profit of 10. B. an example of monopolistic competition. C. perfectly competitive in long-run equilibrium. D. a monopolist for a product with a relatively inelastic demand.