How does the treatment of international transactions differ with respect to gross national product and gross domestic product? Explain. Why do you think that the U.S government has switched from using GNP to using GDP
What will be an ideal response?
Gross national product includes earnings of U.S. corporations overseas and U.S. residents working overseas, whereas gross domestic product does not include these earnings. Gross domestic product includes earnings from current production in the United States that accrue to foreign residents or foreign-owned firms, while gross national product excludes these items. GDP has become more attractive because in the current, more globalized economy, the nationality of workers and firms has become harder to distinguish. Hence, the switch to relying on location of production.
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If interest rates are lowered
A. people are more likely to save their money in banks. B. people are not affected by interest rates being lowered, only when interest rates are raised. C. entrepreneurs are more likely to expand a business by borrowing money. D. entrepreneurs are less likely to borrow money.
Teenagers have more frequent unemployment spells so, on average, they spend more time searching for jobs. Other thing the same, this means that teenagers have a
a. higher unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be higher. b. higher unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment. c. lower unemployment rate. If a larger portion of the adult population were teenaged, the natural rate of unemployment would be lower. d. lower unemployment rate. The portion of the adult population that is teenaged does not affect the natural rate of unemployment.
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
According to this graph, the marginal benefit of litter removal is highest when the ________ bag of litter is removed.
A. 10th B. 15th C. 1st D. 30th
Fill in the blanks. Which of the following has been found by researchers in surveys of consumers? Most people consider it _________ for firms to raise their prices following an increase in costs ____________ to raise prices following an increase in demand.
a. fair; and fair b. fair; but unfair c. unfair; but fair d. unfair; and unfair