B. excluded when calculating GDP because they do not reflect current production
A. added to exports when calculating GDP because imports reflect spending by Americans.
B. subtracted from exports when calculating GDP because imports do not constitute spending
by Americans.
C. subtracted from exports when calculating GDP because imports do not constitute
production in the United States.
D. added when calculating GDP because imports do not constitute production in the United
States.
C. subtracted from exports when calculating GDP because imports do not constitute
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If the state uses a uniform standard, show that such a ruling would not be cost-effective. Which firm should be abating more, and which firm should be abating less?
Consider the environmental problem created by two paint companies that release chromium wastes into a nearby stream. The state authorities set a standard for the waterway that requires a combined abatement level (A) for chromium of 15 units. Suppose that the two firms, firm 1 and firm 2, face the following marginal abatement cost equations: MAC1 = 3.2A1 and MAC2 = 0.8A2, where costs are measured in thousands of dollars.
In order for a nation to be able to consume more in the future, it needs to
A) produce less today in aggregate and save the difference between consumption and income. B) produce more today in aggregate and save the difference between consumption and production. C) consume more today in aggregate and borrow the difference between consumption and income. D) consume less today in aggregate and save the difference between consumption and income.
There is no possibility of further widening of the European Union
Indicate whether the statement is true or false
A decrease in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase