Which of the following is included in determining Gross Domestic Product?
A. a housewife preparing dinner
B. a gardener canning vegetables for consumption during the winter
C. the purchase of a newly built house
D. the purchase of a used car
Answer: C
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All of the following will cause a shift in the supply of smartphones EXCEPT
A) a decrease in the prices of smartphones. B) an increase in the cost of producing smartphones. C) a per-unit government subsidy on the production of smartphones. D) a decrease in the number of smartphone manufacturers.
Suppose policy makers are concerned about a shortage of long-term capital investment. To remedy the problem, various plans to cut capital gains taxes have been suggested. The delay in picking a plan is called the _____
a. implementation lag b. policy coordination problem c. decision-making lag d. recognition lag e. effectiveness lag
To calculate GDP using the income approach, add:
a. indirect business taxes and Social Security taxes. b. capital depreciation and Social Security taxes. c. indirect business taxes and personal taxes. d. indirect business taxes and depreciation. e. compensation of employees, rents, profits, net interest, indirect business taxes, and depreciation.
Increases in the prices of services due to improvement in its quality indicate a(n) _____
a. decline in productivity. b. decline in real GDP. c. increase in output. d. decline in manufacturing output. e. increase in technological progress.