In some rural regions of the United States, residents harvest much of their food supplies directly from nature by hunting, fishing, and gathering. With regard to these subsistence activities:
a. GDP will overestimate the true value of the nation's production of final goods and services
b. GDP will underestimate the true value of the nation's production of final goods and services only when the income approach is used.
c. GDP will correctly estimate the true value of the nation's production of final goods and services.
d. GDP will underestimate the true value of the nation's production of final goods and services.
d
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An economist says, "Technological advances have the power to lower the prices of many of the goods we buy." Here is how this works:
A) Technological advances lead to lower demand, which leads to lower prices. B) Technological advances lead to greater supply, which leads to lower prices. C) Technological advances lead to greater quantity supplied, which leads to lower prices. D) Technological advances lead to lower taxes, which lead to greater supply, which leads to lower prices. E) Technological advances lead to higher taxes, which lead to fewer subsidies, which lead to greater supply, which leads to lower prices.
An increase in business taxes would tend to:
A. increase aggregate demand and increase aggregate supply. B. increase aggregate demand and decrease aggregate supply. C. decrease aggregate demand and increase aggregate supply. D. decrease aggregate demand and decrease aggregate supply.
The most common reason for the existence of oligopolies is
A) ease of entry. B) economies of scale. C) product homogeneity D) advertising.
A Consumer Price Index (CPI) adjustment overcompensates for inflation because it ignores
A) the income effect when relative prices change. B) the substitution effect when relative prices change. C) that some goods are inferior. D) that the substitution effect may offset the income effect.