Depreciation must be subtracted from the calculation of gross domestic product
a. True
b. False
Indicate whether the statement is true or false
False
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Why is a firm in perfect competition a price taker?
What will be an ideal response?
The "rules of the game" under the gold standard can best be described as which of the following:
A) selling domestic assets in a deficit and buying assets in a surplus. B) slowing down the automatic adjustments processes inherent in the gold standard. C) selling domestic assets in order to accumulate gold. D) selling foreign assets in a deficit and buying foreign assets in a surplus. E) selling domestic assets in a surplus.
The interest-rate effect is the impact on real GDP caused by the direct relationship between the interest rate and the:
a. price level. b. exports. c. consumption. d. investment.
Why do market failures arise in case of public goods?
a. The quantity produced is much more than is actually required by the people. b. The quality of these goods is not good enough. c. The quantity produced is too less from the society's point of view. d. The government wastes a lot of resources for producing a public good. e. The users of such goods are required to pay a high price for these goods.