The sale of a used automobile would not be included in GDP of the current year because it is ________.
A. not a market transaction
B. not current production
C. a private transfer payment
D. a purely financial transaction
Answer: B
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Which of the following is not a benefit resulting from international policy coordination?
A) International policy externalities can be internalized. B) It makes the most out of the limited tools central banks have to manage the economy. C) Governments working together are often better positioned to withstand domestic objections to policies if they stand together. D) All of the above are benefits.
If a consumer allocates her income between two goods, x and y, then she will be in equilibrium when
a. MUx/Px = MUy/Py and she is below her budget constraint b. MUx = MUy and she has spent all of her income c. MUx/MUy > Px/Py and all of her income is spent d. MUx/Px = MUy/Py and all of her income is spent e. MUx = MUy and she is below her budget constraint
Which of the following is not included as "net income" in the U.S. balance of payments?
a. Profits earned by U.S. companies from foreign operations and reinvested abroad. b. Profits earned by U.S. companies from foreign operations. c. Foreign dividends received by U.S. residents. d. U.S. interest paid to foreigners. e. All the above are includedas "net income" in the U.S. balance of payments.
The United States savings rate
A. is higher than the Chinese savings rate. B. was 10 percent in 2005. C. was the most important factor contributing to the high economic growth rate since 1995. D. usually goes up during and soon after a recession.