Summing the value added of all firms yields the value of final goods and services produced because both measures:
A. are adjusted for population growth.
B. use constant prices.
C. exclude the value of intermediate goods and services.
D. exclude the value of capital goods.
Answer: C
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If a U.S. firm purchases a foreign firm that violated the Foreign Corrupt Practice Act (FCPA), the U.S. firm ________ responsible for the foreign firm's actions under Part ________ of the FCPA.
A) is; III B) is not; II C) is not; III D) is; II
By studying the effects of choice architecture, we can:
A. expand the simplifying assumption that people always make the choices that are best for themselves. B. blend the ideas of psychology with core economic beliefs. C. open the possibility that we can no longer tell if someone is making a mistake or choosing something that is maximizing his utility. D. All of these statements are true.
Carla spends all her income on two goods: apples and bananas. The price of an apple is $2 and the price of a banana is $1 . If Carla's marginal utility of an apple is 4 and her marginal utility of a banana is 3, she should consume
a. more apples and fewer bananas to maximize total utility b. more bananas and fewer apples to maximize total utility c. more apples and more bananas to maximize total utility d. fewer apples and fewer bananas to maximize total utility e. exactly what she is consuming because she always makes the most rational choice each time she spends a dollar.
During the 1999-2005 period, gasoline prices
A. fell. B. tripled in price. C. quintupled (went up 5 times) in price. D. remained relatively constant in inflation-adjusted terms.