GDP does not measure the economic well-being of a nation because:
a. some things which contribute to well-being have no price tag
b. GDP places no value on leisure
c. ecological costs are not netted out of GDP
d. All of the above are correct.
d
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In a competitive market for a private good with no price or quantity regulations, no external cost nor external benefit, low transactions costs, and no taxes or subsidies,
A) the allocation of resources is planned by the government. B) production is organized by government organizations. C) efficiency can be attained in the market with no government intervention. D) efficiency is usually be achieved by majority rule. E) efficiency is generally obtained by using a command system.
In an article, "Preparing for the Next Black Swan" (Wall Street Journal, Aug 21, 2010), the point is made that diversification may be insufficient in protecting one's portfolio during a "Black Swan" event. Why may this be true?
A) virtually all asset classes may decline at the same time B) investors may be unable to buy different assets during a "Black Swan" event C) some assets may rise while others decline during a "Black Swan" event D) Black Swan events are surprises and thus one cannot prepare for such an event.
Going from M0 to M1 and to M2, what is the principle?
A) from household money demand to firm money demand B) from illiquid to liquid C) from most usable to least usable for transaction purposes D) from most usable to least usable as a store of value
In analyzing the operation of a firm, an economist assumes the firm wants to
A. maximize total profits. B. maximize total revenue. C. maximize total production. D. maximize total sales.