Jack swapped his basketball for Jim's glove. Even if national income accountants were aware of this trade, they wouldn't include it in their GDP measure because
A) it was an unproductive exchange.
B) the basketball and glove were not final goods.
C) this was not a market transaction.
D) it failed to increase the wealth of both traders.
E) there is no satisfactory way to determine market values for bartered goods, new or used.
E
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In the above table, the inflation rate between 2012 and 2013 is approximately
A) 0.9 percent. B) 1 percent. C) 10 percent. D) 100 percent.
What does it mean when a firm is earning positive economic profit?
What will be an ideal response?
Using a broad definition, a firm would have a monopoly if
A) it produced a product that has no close substitutes. B) it does not have to collude with any other producer to earn an economic profit. C) it can make decisions regarding price and output without violating antitrust laws. D) there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.
Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called
a. the natural rate of unemployment. b. cyclical unemployment. c. structural unemployment. d. frictional unemployment.