A stove is produced by a firm in 2014, added to the firm's inventory in 2014, and sold to a household in 2015 . It follows that
a. the value of the good is added to the investment category of 2014 GDP, added to the consumption category of 2015 GDP, and subtracted from the investment category of 2015 GDP.
b. the value of the good is added to the investment category of 2014 GDP, added to the consumption category of 2015 GDP, and not included in the investment category of 2015 GDP.
c. the value of the good is added to the investment category of 2014 GDP, subtracted from the consumption category of 2015 GDP, and not included in the investment category of 2015 GDP.
d. the value of the good is added to the investment category of 2014 GDP, subtracted from the consumption category of 2015 GDP, and added to the investment category of 2015 GDP.
a
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Which of the following is true about underground economies?
a. Underground economies represent a greater percentage of GDP in developing countries than in developed countries. b. Higher taxation and labor regulation are reasons why we see more underground activities c. The underground economy includes legal activities that are concealed for the purpose of tax evasion. d. all of the above
Which of the following features does a customs union have?
A. Free trade among those members with similar economic policies B. Free movement of factors of production C. Harmonization of all economic policies D. Common set of external tariffs
The following table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:
A. $400. B. $1,400. C. $1,000. D. $100.
Which of the following is true?
A) If consumption of a good gives rise to a positive externality, it can be internalized by taxing the producers of the good. B) If production of a good gives rise to a negative externality, it can be internalized by taxing the producers of the good. C) If production of a good gives rise to a positive externality, it can be internalized by taxing the consumers of the good. D) If consumption of a good gives rise to a negative externality, it can be internalized by subsidizing the purchase of the good.