Capital goods are final goods, but their production is NOT part of GDP.
a. true
b. false
Ans: b. false
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When a per unit tax is imposed on the sale of a product of a monopolist, the resulting price increase will
A) always be less than the tax. B) always be more than the tax. C) always be less than if a similar tax were imposed on firms in a competitive market. D) not always be less than the tax.
The Contract Labor Law, which was passed in 1864 and repealed in 1868,
a. authorized labor contracts made abroad between American companies and foreign workers. b. resulted in a large increase in European immigration to the U.S. c. was supported by American wage earners. d. authorized workers to strike and engage in collective bargaining.
Suppose the price level of a product is gradually declining due to fall in demand. When will a producer of this product decide to shut down in the short run?
Put yourself in the place of a blacksmith during the early years of the 20th century. Assume you and all the other blacksmiths in the town were doing as well as any alternative options that were available. Then cars began to arrive and fewer horses needed horseshoes. Describe, using terms from this chapter, the sequence of events that ultimately led to you closing your shop and hunting another job.
What will be an ideal response?