Inventories are included in GDP because
A. they are value added to final goods.
B. they were produced and are sold in their final form.
C. they will depreciate.
D. they are considered government spending.
Answer: B
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All the following are assumptions of the classical model EXCEPT
A) pure competition exists. B) buyers and sellers react to nominal money prices rather than to relative prices. C) wages and prices are flexible. D) people are motivated by self-interest.
The owner of each share of a corporation's stock:
a. has the right to cast one vote for electing its board of directors. b. is entitled to 1 percent of the total profit earned by the firm. c. has the right to participate in its overall supervision. d. is liable for 1 percent of the total loss incurred by the company.
Refer to the Article Summary. Assume countries initially enacted protectionist measures against Chinese steel imports. If these protectionist measures were eventually eliminated, then all else equal, the price of steel in those countries would ________ and the quantity of steel demanded in those countries would ________.
A) decrease; decrease
B) increase; decrease
C) decrease; increase
D) increase; increase
If the supply curve is perfectly inelastic, the burden of a tax on suppliers is borne:
A. partly by the suppliers and mostly by the consumers if the demand curve is elastic. B. entirely by the consumers. C. entirely by the suppliers. D. mostly by the suppliers and partly by the consumers if the demand curve is inelastic.