U.S. GDP and U.S. GNP are related as follows:
a. GNP = GDP + Value of exported goods - Value of imported goods.
b. GNP = GDP - Value of exported goods + Value of imported goods.
c. GNP = GDP + Income earned by foreigners in the U.S. - Income earned by U.S. citizens abroad.
d. GNP = GDP - Income earned by foreigners in the U.S. + Income earned by U.S. citizens abroad.
d
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Explain how an economy can experience long-run economic growth and deflation at the same time
What will be an ideal response?
Correcting a market with an externality through taxation creates ________ total surplus compared to correcting it through a quota.
A. the same B. more C. less D. Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
An economist estimates that the price elasticity of demand for disposable diapers is 0.67. This suggests that disposable diaper producers could:
A. advertise more to raise the price elasticity of demand. B. encourage more parents to use cloth diapers. C. lower the price of disposable diapers to raise more revenue. D. raise the price of disposable diapers to raise more revenue.
Which of the following explains why mortgages weren't considered securities prior to 1970?
A) The Federal Reserve Act of 1913 prohibited mortgages from being considered securities. An amendment to the Act was approved in 1970 that allowed mortgages to be considered securities. B) Until 1970, the average annual increase in housing prices did not allow the buying and selling of mortgages to be profitable. There has been a significant annual increase in housing prices and mortgage values since 1970. C) Congress passed a law in 1970 stipulating that mortgages could be classified as securities. D) Prior to 1970, mortgages were rarely resold in the secondary market.