How would the value of output produced at an American-owned factory in the United States and a foreign-owned factory in the United States be treated in GDP accounting?
What will be an ideal response?
GDP is a measure of the total market value of all final goods and services produced within the borders of a given country in a given period of time, typically a year. The value of output produced at an American-owned factory in the United States and a foreign-owned factory in the United States would both be treated as part of domestic output in GDP accounting. Thus, GDP represents all domestic production.
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George makes $250 a week working as a student aid. When he cashes his check he takes $100 to the cashiers office to pay part of his tuition. $25 goes to paying off his books, $75 goes for entertainment and $50 he keeps for unexpected expenditures
Which of the following statements is TRUE? A) The transactions demand for money is $125, the precautionary demand is $75 and the asset demand is $50. B) The transactions demand for money is $0, the precautionary demand is $250 and the asset demand is $0. C) The transactions demand for money is $200, the precautionary demand is $50 and the asset demand is $0. D) The transactions demand for money is $250, the precautionary demand is $0 and the asset demand is $0.
The political structure that is most consistent with economic growth and progress is
What will be an ideal response?
A dollar spent to buy a product ends up being a dollar received by the seller of the product. This statement explains why GDP includes ______.
a. marginal expenditure and total income b. total expenditure and total income c. total expenditure and marginal income d. marginal expenditure and marginal income
Debt service is the percent of:
A. GDP that is owed in debt. B. the total value of household debt that consumers pay in interest. C. the total value of household debt that banks pay to create the loans. D. disposable income consumers have to pay for their debts.