Would the services supplied by prostitutes and brothels be included in calculating GDP in the United States?
A) Yes, because those are final services.
B) Yes, but only in those states where brothels are legal.
C) No, because those services are immoral.
D) No, because those are not truly economic services.
B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
When you accumulate more money,
A) the interest rate you are paid on your currency increases. B) the opportunity cost of holding money decreases. C) your marginal tax rate falls. D) the marginal benefit of holding money decreases. E) you earn a lower rate of interest on your checkable deposit.
Explain three ways in which imposing a quota on imports may reduce a country's overall economic well-being
What will be an ideal response?
Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. Nominal GDP in 2013 is equal to
A) $500. B) $800. C) $640. D) $625. E) $200.