The normal measurement of GDP overestimates economic well-being because it excludes
A) spending on health.
B) leisure time.
C) the effects of pollution.
D) non-market production.
E) unreported home renovations.
Answer: C) the effects of pollution.
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All of the following are sources of funding for capital goods in developing countries EXCEPT
A) portfolio investment. B) taxation. C) foreign direct investment. D) loans from banks.
The concept of "the invisible hand" suggests that
A) products are produced out of a seller's sense of charity. B) when the seller is better off, the buyer is worse off. C) sellers exploit consumers with high prices. D) buyers and sellers are self-interested. E) the command system is the only way of efficiently allocating resources.
A firm built an inventory of 16-bit chips for $50,000 last year. However, the introduction of 32-bit chips lowers the market price for 16-bit chips and the inventory can only be sold for $40,000 now
What is the opportunity cost of the inventory of 16-bit chips? A) $50,000 B) $40,000 C) $10,000 D) $90,000
The reserve ratio is 10 percent. Depositors regularly keep 10 percent of their deposits as cash. If the Fed buys $1 million of U.S. government securities, excess reserves
A) increase by $800,000. B) increase by $810,000. C) increase by $900,000. D) increase by $1 million.