The appropriate formula for computing Gross Domestic Product using the income approach (excluding depreciation and indirect income taxes) is
A. wages + rent + interest + profits + indirect business taxes.
B. wages + rent + interest + profits.
C. wages + rent + interest + profits + indirect business taxes + depreciation.
D. consumption + investment + government spending + net exports.
Answer: B
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The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is
A) zero. B) the triangle ABE. C) the triangle BCE. D) the triangle ACE. E) the triangle BCE minus the triangle ABE.
Bonds that pay no periodic (annual) interest are
A) zero-coupon bonds. B) coupon securities. C) perpetuities. D) tax-exempts.
A depreciation of the dollar under perfect capital mobility would cause
a. the LM curve to shift to the left. b. the LM curve to shift to the right. c. the IS curve to shift to the right. d. the IS curve to shift to the left. e. the BP curve to shift up.
Which of the following is an example of a produced factor of production?
a. a plant in which automobiles are assembled b. skills that people accumulate in high school and college c. skills that people accumulate through experience in the workplace d. All of the above are correct.