In calculating GDP, economists
A) measure total expenditure as the only true measure.
B) can measure either total expenditure or total income.
C) measure total income as the only true measure.
D) measure total income minus total expenditure.
E) measure total income plus total expenditure.
B
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In its macroeconomic equilibrium, the economy can be producing at
i. below full employment. ii. full employment. iii. above full employment. A) i only B) ii only C) iii only D) i or ii E) i, ii, or iii
Refer to Table 2-20. What is Japan's opportunity cost of producing one pound of rice?
A) 0.04 units of a wristwatch B) 4 wristwatches C) 25 wristwatches D) 40 wristwatches
In the circular flow model, households:
a. Buy products and sell resources b. Sell products and buy resources c. Buy products and resources d. Sell products and resources
A fall in the price of the final product produced by a firm will cause
A) a decline in the price of an input used to produce the good. B) a movement down the demand curve for an input used to produce the final product. C) a reduction in demand for an input used to produce the final product. D) a reduction in the supply of an input used to produce the final product.