The expenditure approach measures GDP by adding
A) compensation of employees, rental income, corporate profits, net interest, and proprietors' income.
B) compensation of employees, rental income, corporate profits, net interest, proprietors' income, subsidies paid by the government, indirect taxes paid, and depreciation.
C) compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and depreciation and subtracting subsidies paid by the government.
D) consumption expenditure, gross private domestic investment, net exports of goods and services, and government expenditure on goods and services.
D
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In purchasing diamonds and water, a consumer would maximize utility by
a. dividing expenditure equally between those two goods b. equating the marginal utilities from each of those two goods c. equating average utility per diamond with average utility per unit of water d. equating the total utility per diamond with the total utility per unit of water e. equating marginal utility per dollar spent on each of those two goods
Can purchasing-power parity be used to explain the fact that the U.S. dollar depreciated by more than 50 percent against the German mark between 1970 and 1998, but appreciated by more than 100 percent against the Italian lira during the same period? Defend your answer
Which of the following does NOT provide a positive externality?
A. Getting a flu vaccine B. The proliferation of email accounts C. Airport and aircraft noise D. Actions that benefit others
The Bertrand model of oligopoly reveals that:
A. capacity constraints are not important in determining market performance. B. changes in marginal cost do not affect prices. C. perfectly competitive prices can arise in markets with only a few firms. D. All of the statements associated with this question are true.