Which of the following is a shortcoming of GDP?
a. GDP excludes changes in inventories.
b. GDP includes an estimate of illegal transactions.
c. GDP excludes nonmarket transactions.
d. GDP excludes business investment spending.
c
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To be successful in stabilizing AD, the application of a constant growth-rate rule for the money supply requires
A) a constant velocity of money. B) a steady and predictable rate of growth of the velocity of money. C) a steady and predictable rate of growth of the velocity of income. D) Both B and C are correct.
The risk adjusted discount rate
A) is the sum of the risk-free rate and the risk premium. B) includes risk in the denominator of the present value calculation. C) includes risk in the numerator of the present value calculation. D) All of the above
In economics, which of the following is considered as financial capital?
a. Offices and warehouses b. Stocks and bonds c. Machinery d. Factories e. Equipment
The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The production effect of the tariff on computers is worth
A. $48 million. B. $44 million. C. $4 million. D. $8 million.