Which of the following generate an income that would be excluded from the GDP of an economy?
a. A professional working in small start-up firm
b. A person selling marijuana to patients with medical prescriptions
c. A person selling electronic guides to tourists
d. A farmer selling oranges to a fruit juice manufacturer
d
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Autonomous aggregate expenditures decreases by $200 million, the marginal propensity to consume is 0.50, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.10. Calculate the change in income
What will be an ideal response?
The majority of federal government spending on income transfers would be classified as welfare
Indicate whether the statement is true or false
Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon
a. are valued more by the market relative to Susan's and that explains why her income is higher than Susan's. b. are valued less by the market relative to Susan's and that explains why her income is higher than Susan's. c. are valued less by the market relative to Susan's and that explains why her income is lower than Susan's. d. are more expensive because she receives a compensating differential.
Marcus is of the opinion that the theory of liquidity preference explains the determination of the interest rate very well. Most economists would say that Marcus's opinion is
a. Keynesian in nature, and that his view is more valid for the long run than for the short run. b. classical in nature, and that his view is more valid for the long run than for the short run. c. Keynesian in nature, and that his view is more valid for the short run than for the long run. d. classical in nature, and that his view is more valid for the short run than for the long run.