Explain the two different ways of looking at GDP
What will be an ideal response?
There are the expenditure approach and the income approach to looking at GDP. The expenditures approach adds up all the expenditures used to purchase output from the economy by the consumer, businesses, government, and foreigners. The income approach looks at the value of the income that is derived from producing the economy’s output such as wages, rents, interest, and profits. Either approach can be used in calculating GDP and will produce the same answer.
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The distinction between public health problems and private health problems becomes blurred when _____
a. externalities are positive b. preferences are quasi-linear c. health insurance is unavailable d. health care spending is from public coffers
Which of the following is not included in Nation A's reserves account in the balance of payments?
a. Changes in official gold holdings. b. The stock official (i.e., central bank) holdings of foreign currencies. c. Increases in borrowing rights at the International Monetary Fund. d. All of the above are included in reserves.
Exhibit 6A-2 Consumer Equilibrium
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Given the budget lines and indifference curves shown in Exhibit 6A-2, points D, A, and E yield:
A. more total utility than point B. B. more total utility than points B and F. C. less total utility than points B and C. D. equal total utility to points B, F, and C.
Excise taxes of the Federal government include the following items, except:
A. Alcoholic beverage tax B. Tobacco tax C. General sales tax D. Gasoline tax