For the purposes of GDP accounting, government purchases
A) include transfer payments.
B) are considered part of investment.
C) include wages and benefits paid to government workers.
D) are considered part of consumption.
C
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How can managers of natural monopolies exaggerate their costs?
What will be an ideal response?
Trade barriers that restrict imports from developing countries tend to be:
A. Highest in the capital goods and technology sectors of those economies B. Lowest in the labor-intensive manufacturing sectors of those economies C. Lowest for those products in which DVCs have a comparative advantage D. Highest for those products in which DVCs have a comparative advantage
A U.S. tariff on oil would reduce the domestic quantity of oil demanded.
Answer the following statement true (T) or false (F)
The government imposes a price floor on wheat that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest
A. using rationing coupons that can be resold. B. that no rationing system will be necessary. C. using a queuing system to compensate for the excess demand. D. using rationing coupons that cannot be resold.