The value of intermediate goods is not included in the calculation of GDP to avoid the problem of
a. depreciation.
b. inflation.
c. double counting.
d. transfer payments.
c
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If a coupon bond has a "face value" of $1000, it means that
A) the original purchaser paid $1000 for it. B) each purchaser must pay $1000 for it. C) it was purchased for at least $1000 and perhaps more. D) the holder will be paid $1000 when the bond matures. E) the holder will be paid $1000 plus accumulated interest when the bond matures.
A key lesson from the payroll tax is that the
a. tax is a tax solely on workers. b. tax is a tax solely on firms that hire workers. c. tax eliminates any wedge that might exist between the wage that firms pay and the wage that workers receive. d. true burden of a tax cannot be legislated.
Use the figure to calculate the income elasticity of demand when income increases from $25,000 to $30,000:
A. -0.1818 B. -1.0 C. 0.1818 D. 1.2 E. -1.5
How many cars will this country import in an open economy situation?
A. 60,000 B. 20,000 C. 80,000 D. 40,000