Which of the following is false?
a. We do not have information on nonmarket transactions output that is reliable enough to include it in the GDP.
b. The most important nonmarket transaction omitted from GDP are services provided directly in the home.
c. The value that individuals place on leisure is omitted in calculating GDP
d. All goods and services exchanged in the current period are included in this year's GDP.
d
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Refer to Figure 22-1. Using the per-worker production function in the figure above, the largest changes in an economy's standard of living would be achieved by a movement from
A) B to C to D. B) D to C to B. C) A to B to C. D) C to B to A.
Several years ago, Alcoa was effectively the sole seller of aluminum because the firm owned nearly all of the aluminum ore reserves in the world. This market was not perfectly competitive because this situation violated the:
A) price-taking assumption. B) homogeneous product assumption. C) free entry assumption. D) A and B are correct. E) A and C are correct.
According to the net exports effect, as the price level falls relative to the rest of the world,
a. foreigners buy fewer goods. b. foreigners buy more U.S. goods. c. the aggregate demand curve shifts to the left. d. the aggregate demand curve shifts to the right. e. the supply of U.S.-made goods increases.
In which of the following examples is excess burden not present?
a. Harriet decides to give up her Saturday hours at her law office after income tax rates rise. b. Rudolf still smokes three packs a day even after the excise tax on cigarettes rose 10 cents a pack. c. Wilma reduced the automatic payroll deduction to her savings account after the tax on interest was imposed. d. Harper decided to take a vacation in Bermuda rather than invest in stocks after the tax rate on capital gains was increased.