If national income accountants fail to make an adequate adjustment for increases in the quality of goods and services over time,
a. real GDP will overstate the growth rate of real output.
b. the GDP deflator will underestimate inflation.
c. the GDP deflator will overestimate inflation.
d. real GDP will overstate the growth of real output, and the GDP deflator will understate inflation.
C
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According to this Application, for approximately 12 million homeowners in 2012, the amount owed on mortgages was higher than the actual value of the homes. Homeowners who find themselves in this situation are said to be
A) "financially grounded." B) "subprime borrowers." C) "underwater." D) "shadow mortgage holders."
How does the marginal benefit from a good change as the quantity produced of that good increases?
What will be an ideal response?
Which of the following statements about the International Monetary Fund (IMF) is TRUE?
A) The IMF was created to finance long-term economic development projects in poor countries. B) The IMF was created to reduce tariff barriers between nations. C) The IMF functions as a central bank that conducts monetary policy for the world economy. D) The IMF obtains funds from quota subscriptions charged to member countries.
Assuming the standard assumptions, in a repeated-play ultimatum game, the first player's best strategy in the last round is to:
A. split the money evenly with a bit more going to him or herself. B. take all the money for oneself. C. give the most money to the opponent. D. give the most money to oneself.