Which of the following would be included in U.S. GNP but not in U.S. GDP?
A. Chipsets produced by U.S.-owned firms operating in China.
B. Auto parts produced by a Japanese-owned firm operating in North Carolina.
C. Sales of used cars in the United States.
D. The tips received by a waiter in New Jersey.
Answer: A
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Suppose the relationship between a person's age and his or her height is plotted with the age measured along the x-axis and the height measured along the y-axis. Then, the curve showing this relationship is
A) a straight line with a positive slope. B) positively sloped and becoming less stee
When a rug factory increases the labor it hires from 10 to 12 workers, the number of rugs produced increases from 16 to 20 . We know then that the marginal physical product of labor is
a. increasing b. negative c. impossible to compute d. 4 rugs e. 2 rugs
If you hear an economist argue that the economy does not experience business cycles but merely experiences variations in economic activity over time, you know that economist belongs to the school of
a. real business cycle theory b. Keynesian economics c. production possibilities growth theory d. accelerator cycle theory e. capital-based, long run growth theory
Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital. What are two alternative explanations for why college grads receive higher pay?
What will be an ideal response?