To measure the annual increase in the capital stock most broadly, we should include
a. business purchases of plant and equipment, changes in inventory, and new home construction
b. private investment spending plus government investment spending
c. stocks and bonds purchased by firms, total investment, and human capital
d. purchases of durable goods and human capital
e. net private investment spending, net government investment spending, purchases of durable goods, and investment in human capital
E
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The production side efficiency loss of a tariff is caused by
A) higher profits gained by foreign producers. B) the expansion of relative inefficient domestic production. C) the contraction of domestic consumption. D) the increase in government revenue.
Economic growth can be portrayed as a(n):
What will be an ideal response?
To measure the change in the standard of living, it is best to use the growth rate
A) from the Rule of 70. B) of the price level. C) of real GDP per person. D) of real GDP. E) of the population.
The effective rate of protection is
(a) value added with protection divided by value added without protection. (b) value added with protection. (c) value added without protection. (d) (value added with protection minus value added without protection) divided by value added without protection.