Gross domestic product understates the total production of final goods and services because of the omission of
A) intermediate goods. B) exports.
C) inflation. D) the underground economy.
D
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When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?
A) thinking at the margin B) making assumptions C) isolating variables D) all of the above
In perfect competition, the price of the product is determined where the market
A) elasticity of supply equals the market elasticity of demand. B) supply curve and market demand curve intersect. C) average variable cost equals the market average total cost. D) fixed cost is zero.
If the equation of exchange holds, and if the velocity of money and total output are fixed, then, if the money supply doubles,
A) the price level will increase by half. B) the price level will decrease by half. C) the price level will double. D) the price level will decrease by 25 percent.
Paper bills of different denominations ($1, $2, $5, $10, etc.) generally have an equal average life of circulation within the U.S. economy
Indicate whether the statement is true or false