To compute national income from GDP,
A. national income is first calculated, and then depreciation of capital and indirect business taxes are subtracted from it to get GDP.
B. GDP is first calculated, and then gross private domestic investment is subtracted from it to get national income.
C. GDP is first calculated, and then capital depreciation and proprietors' income are subtracted from it to get national income.
D. GDP is first calculated, and then depreciation of capital is subtracted from it to get national income.
Answer: D
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A tax on sellers:
A. shifts the supply curve left by the amount of the tax. B. shifts the demand curve left by the amount of the tax. C. shifts the supply curve up by the amount of the tax. D. shifts the demand curve down by the amount of the tax.
In the short run (specificfactors) model, what will happen to the rental rate on capital and the wage rate when there is FDI in the country?
a. Both the rental rate on capital and the wage rate will increase. b. Both the rental rate on capital and the wage rate will decrease. c. The rental rate on capital will increase and the wage rate will decrease. d. The rental rate on capital will decrease and the wage rate will increase.
An increase in domestic demand for a product protected by a quota results in an increase in producer surplus for domestic firms, while for a tariff it would result in more imports
Indicate whether the statement is true or false
Assume that Blade Runner specializes in producing in-line skates and Hang Ten specializes in producing surfboards. After trade Blade Runner exports 800 pairs of in-line skates and imports 200 surfboards. The terms of trade
A. are 4:1 in-line skates to surfboards. B. are 1/4:1 in-line skates to surfboards. C. are 1:4 in-line skates to surfboards. D. cannot be determined from this information.