If India decides to enact environmental laws to reduce air pollution, what would be the effect on GDP?
A) GDP would decrease if the pollution controls reduce productivity by more than the cost of the controls.
B) GDP would increase as the environmental costs of pollution were not included in the calculation of GDP.
C) GDP would increase as the citizens of India were made happier as the air pollution was reduced.
D) GDP would increase reflecting the fact that the air would be cleaner.
A
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A recession causes
a. transfer payments and corporate profits to increase b. military spending and corporate profits to increase c. unemployment to increase and transfer payments to decrease d. transfer payments to increase and corporate profits to decrease e. household income and government transfer payments to decrease
The demand for ice cream is very elastic. This fact indicates that the demand for ice cream workers is
a. one b. inelastic c. elastic d. seasonal e. recession-proof
According to the law of demand, when the price of shoes ________ people will consume ________ shoes.
A. falls, more B. rises, more C. falls, the same amount D. rises, the same amount
The fact that a bank's assets tend to be long-term while its liabilities are short-term creates:
A. lower risk for the bank, this is why they follow this strategy. B. credit risk. C. trading risk. D. interest-rate risk.