A steel company sells some steel to a bicycle company for $150 . The bicycle company uses the steel to produce a bicycle, which it sells for $250 . Taken together, these two transactions contribute
a. $150 to GDP.
b. $250 to GDP.
c. between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle.
d. $400 to GDP.
b
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If a country has a ________ exchange rate, its central bank must buy and sell its holdings of currencies to maintain a given exchange rate
A) flexible B) fixed C) floating D) all of the above
Two reasons why a few individuals earn very high pay in the sports and entertainment fields are that their
a. marginal productivity is high and entry into those industries is restricted b. marginal productivity is high and the cross-elasticity of demand between their services and the services of other employees is also high c. marginal productivity is high and there is open competition for their talents d. wage elasticity of supply is high and there is open competition for their talents e. marginal productivity is high and they are prohibited from changing employers
Which of the following variables is measured only at a particular point in time and not over different time periods?
a. The unemployment rate b. Consumer income c. The federal government's debt d. The federal government's budget deficit e. Total expenditure
Given the following econometric model, wage = ?0+ ?1educ + u, can we eliminate the error term u entirely?
A. Yes, by including other observable factors, such as experience, that can also influence wage. ? B. Yes, by ensuring that everyone reports wage accurately and truthfully. C. No, because education is not always reported accurately. D. No, because many factors affect wage, that we cannot even list, let alone observe.