The interest that people receive on the government bonds is part of
a. net national product and is included in national income
b. their personal income, but is not included in national income
c. their personal income, but is included in capital depreciation
d. the underground economy, so it is not included in GDP
e. the numerous transfer payments the government makes, so they are not counted as part of national income
B
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When entry barriers are low, firms in a competitive price-searcher market
a. can expect many new rivals to enter regardless of current profitability. b. can expect competing firms to enter the market if the activity is profitable. c. can never earn economic profit. d. will always be able to earn economic profit.
Which of the following best describes full employment?
(a) Less than 5% of the labour force is unemployed; (b) The level of employment in the economy is sustainable; (c) Employment and unemployment are at their "natural" rates; (d) All of the above could describe it.
If opportunity costs are constant, then
A) the production possibilities curve does not exist. B) the production possibilities curve bows outward. C) the production possibilities curve is a straight line. D) factors of production must not be fully employed.
Why do national income accountants include indirect business taxes in the income approach to GDP computation?
A. Indirect business taxes are the allowances for the portion of capital worn out by producing GDP. B. Indirect business taxes are part of firms' profits. C. Indirect taxes are income payments to suppliers of resources. D. Indirect business taxes are income for the government received through collection by firms.