Because of transactions which take place in the underground economy, the:
a. GDP calculation tends to overstate the actual value of goods sold in the economy.
b. GDP calculation tends to accurately portray the value of goods sold in the economy.
c. GDP calculation tends to understate the actual value of goods sold in the economy.
d. value of the GDP calculation will be equal to the value of the national income calculation.
e. value of the GDP calculation through the expenditure approach will be greater then the value calculated through the income approach.
c
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If the World Bank makes loans to nations that can attract private funds
A) the increase in growth in that nation will spill over to other nations that are developing. B) the presence of the World Bank's loans will lead to even more private funds being attracted to that country. C) the World Bank's loans will crowd out the private funds made to developing nations to encourage economic growth. D) these loans will interfere in the private market for capital goods and can lead to inefficient investment.
In the later part of the twentieth century, the price of crude oil began to increase after decades of relatively steady prices, which of the following could explain this phenomenon?
A) Worldwide reserves have been increasing. B) Worldwide demand has been increasing. C) Global warming D) Extraction technology has been degrading.
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.If MiiTunes and The Rock Shop are both in the music business and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
A. MiiTunes charges high prices and The Rock Shop does not enter. B. MiiTunes charges low prices and The Rock Shop enters. C. MiiTunes charges low prices and The Rock Shop does not enter. D. MiiTunes charges high prices and The Rock Shop enters.
Among non-Hispanic whites, blacks, and Hispanics, the group with the highest poverty rate is ______.
Fill in the blank(s) with the appropriate word(s).