Gross private domestic investment is a component of which approach to measuring GDP?
A) incomes approach
B) expenditure approach
C) linking approach
D) output approach
B
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The external benefit of a good
A) equals its consumer surplus. B) equals its producer surplus. C) equals its total surplus. D) is a benefit from the good falling on people who are not the consumers of the good.
A decrease in the real interest rate will
A) increase consumption and investment. B) increase consumption and reduce investment. C) increase saving and investment. D) decrease investment and government spending.
A flight to quality refers to a shift by savers from
A) bonds and into stocks. B) stocks and into gold or other precious metals. C) bonds and into real assets, such as real estate. D) low-quality bonds and into high-quality bonds.
Reparations for slavery in the United States would
A) be consistent with the Pareto principle. B) be inconsistent with the Pareto principle. C) have nothing to do with the Pareto principle. D) be unconstitutional.