An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is
A) earnings of a Spanish factory with British owners counts only in Spain's GDP.
B) earnings of a Spanish factory with British owners counts only in Britain's GNP.
C) earnings of a Spanish factory counts in Spain's GNP but are part of Britain's GDP.
D) earnings of a Spanish factory counts in Spain's GDP but are part of Britain's GNP.
E) earnings of a Spanish factory counts in Spain's GNP but not in Britain's GDP or GNP.
D
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The welfare program earmarked for the purchase of only some goods (and not others) accepted primarily at retail stores and supermarkets is known as
a. food stamps b. AFDC c. Medicaid d. Medicare e. Social Security
When a policy succeeds in giving buyers and sellers in a market an incentive to take into account the external effects of their actions, the policy is said to
a. equalize private value and private cost. b. equalize private cost and external cost. c. externalize the actions of the buyers and sellers. d. internalize the externality.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
If the interest rate is 4 percent per year and you borrow $100 for one year, at the end of the year you must pay back
A) $96. B) $100. C) $104. D) $4.