Looking at ratios like debt to GDP ratios is useful for evaluating the sustainability of government debt
A) because it provides information of the size of the debt relative to the size of an important tax base
B) because if debt exceeds GDP, it is obviously unsustainable
C) because GDP is our best measure of total assets available in the economy
D) because ratios are always more informative than raw levels
Answer: A) because it provides information of the size of the debt relative to the size of an important tax base
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In the above figure, the long-run average cost curve exhibits diseconomies of scale
A) between 5 and 10 units per hour. B) between 10 and 20 units per hour. C) between 20 and 25 units per hour. D) along the entire curve.
How are intermediate goods treated in the calculation of GDP?
A) Their value is counted separately, and their value is also included as part of the value of the final good for which they are an input. B) Their value is counted separately, but is not included as part of the value of the final good for which they are an input. C) They are included only if they are imported. D) Their value is not counted separately, but included as part of the value of the final good for which they are an input.
Which one of the following individuals would be classified as structurally unemployed?
A) Joe was laid off by by his construction company because there was a reduction in the number of houses built in the winter. B) Gail lost her job with the state because there was a reduction in the state budget. C) Tommy lost his job when the steel mill where he worked was closed because domestic producers would not produce as efficiently and cheaply as foreign firms. D) Fay lost her job in early January when the Christmas store where she worked was closed.
The use of money as a medium of exchange requires a double coincidence of want
a. True b. False Indicate whether the statement is true or false