Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:
A. longer life expectancies.
B. higher rates of infant mortality.
C. higher material standards of living.
D. higher rates of literacy.
Answer: B
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Refer to Table 19-18. What is the GDP deflator in 2016 if 2016 is the base year?
A) 120 B) 118 C) 100 D) 87
A key objective of a government safety net for the banking system is to ensure ________
A) that the poor have access to bank services B) an efficient allocation of credit C) bank profitability D) that depositors always believe that their money is safe in the bank
Characteristics that enable an item to serve well as money include each of the following, except ________
A) durable B) abundant C) divisible D) portable E) verifiable
Accountants do not often report economic profits on income statements and balance sheets because:
a. economic profits are exactly the same as accounting profits, and thus they do not need to be broken out in financial statements. b. the cost of capital, while easy to measure, is very difficult to report. c. it might make some firms look as though they possessed an unfair competitive advantage over other firms. d. the cost of equity capital is very difficult to measure, and opportunity costs vary from investor to investor. e. the concept of economic profit is not firmly established in economic theory.