Which of the following is a difference between net domestic product (NDP) and gross domestic product (GDP)?
a. GDP includes the cost of polluting the environment, while NDP does not
b. GDP excludes net taxes, while NDP includes it.
c. GDP excludes that part of the capital stock used up in the production process, while NDP includes it.
d. GDP includes all government spending, while NDP excludes government spending.
e. GDP includes that part of the capital stock used up in the production process, while NDP does not.
e
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When we study economic growth, we are most concerned about changes in
A) the output ratio. B) the level of natural real output. C) the absolute difference between natural and actual real output. D) None of these.
Firms in monopolistically competitive markets can differentiate their products on the basis of: a. geographical location. b. service
c. credit terms. d. all of the above.
The nominal exchange rate:
A. expresses the value of goods in one country in terms of the same goods in another country. B. expresses the value of goods in one country in terms of another country's currency. C. is the stated rate at which one country's currency can be traded for another country's goods and services. D. is the stated rate at which one country's currency can be traded for another country's currency.
Some economists believe that poverty can be good for the economy since
A. the desire to avoid poverty provides a powerful incentive to "work hard and play by the rules." B. countries with high rates of economic growth since the 1980s tend to have less income inequality. C. poverty discourages child-bearing, leaving women with more time to work. D. poverty seems to encourage gambling.