The GDP of an economy is accurately calculated when:
a. the values of both intermediate and final goods are included
b. the values of both intermediate and final goods are excluded.
c. the value of intermediate goods are included, while the value of final goods are excluded.
d. the value of final goods are included, while the value of intermediate goods are excluded.
d
You might also like to view...
In equilibrium, with exports equal to imports it must be the case that
A) leakages equal injections. B) saving plus taxes equal government expenditures plus investment. C) total expenditures equal GDP. D) All of these.
Government intervention to reduce income inequality might reduce growth rates because of rent-seeking behavior. This means that
A. as a larger fraction of the population falls below the poverty line they are pushed out of home ownership and into rental housing, reducing the savings rate. B. landlords might raise rental rates on housing in order to pay the higher taxes that go with government wealth redistribution programs. C. people who are not home owners, but reside in rental housing, may become unmotivated and work less, reducing payments to landlords and slowing real estate markets. D. groups who are not among the neediest might put pressure on government officials to obtain transfers of wealth.
During the production process Ajax Corporation releases pollution into the air. Ajax Corporation operates in a monopolistic competitive industry. Which of the following statements addresses the pollution situation?
A. This is an example of a market failure and is a reason for the government to regulate the industry. B. This is known as the lemons problem. C. Ajax is taking advantage of asymmetric information. D. The quality of the product could be improved if the amount of pollution can be reduced.
Adam Smith’s book, The Wealth of Nations,
A. Was a critique of Mercantilism B. Was a product of the Enlightenment. C. Was philosophically consistent with the Declaration of Independence. D. All of the above are correct