Which approach to calculating GDP would be best to compare consumer activity versus government purchases?
A. The expenditure approach
B. The income approach
C. The value-added approach
D. Any of these measurements will allow that comparison equally well.
A. The expenditure approach
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Risk premiums on corporate bonds tend to ________ during business cycle expansions and ________ during recessions, everything else held constant
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Macroeconomics is the study of ________ while microeconomics studies ________
A) large business enterprises; small business ventures B) the overall household economic activity; market behavior C) an individual firm; the overall economic performance of a nation D) the overall economic performance of the world; the economy of a single country E) none of the above
While calculating a nation's output per hour worked, the farming sector is excluded. This is because their output is not sold in the market and their productivity is hard to measure
a. True b. False Indicate whether the statement is true or false
To economists, the main difference between the short run and the long run is that:
A. the law of diminishing returns applies in the long run, but not in the short run. B. in the long run all resources are variable, while in the short run at least one resource is fixed. C. fixed costs are more important to decision making in the long run than they are in the short run. D. in the short run all resources are fixed, while in the long run all resources are variable.