Answer the following statements true (T) or false (F)
1 . U.S. gross domestic product (GDP) measures the market value of all goods and services
produced by Americans in one year.
2. A product that was produced in 2013 and not sold until 2014 is counted as part of GDP in
2013.
3. The value added in an industry includes the wages earned by workers in the industry.
4. The value of a sale of a share of stock is considered to be an investment in national income
accounting.
5.Gross private domestic investment can be divided into replacement investment and net
investment.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. TRUE
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Anyone can purchase sulfur dioxide emission allowances on the Chicago Mercantile Exchange. Several environmental groups have raised money to buy allowances (which they subsequently destroy)
As part of their fund-raising, these groups have urged contributors to buy the allowances as gifts. As one newspaper story put it, "For the environmentalist in your life, here's a gift that is sold by the ton, fits in an envelope and will last forever." Source for quote: Randall Edwards, "Dear Santa: Please Bring Me Sulfur Dioxide for Christmas," Columbus Dispatch, December 19, 1999. What would be the impact on the price of the emission allowances in the market if more people buy sulfur emission allowances and destroy them? A) The price falls to zero. B) The price rises. C) The price falls but not to zero. D) The price remains unchanged because the allowances purchased by the environmental groups are destroyed.
The ____ is equal to the sum of the squares of the market shares of all the firms in an industry
a. market concentration ratio b. Herfindahl-Hirschman index c. correlation coefficient d. standard deviation of concentration e. none of the above
A firm may pay efficiency wages in an attempt to
a. entice workers to work the night shift rather than the day shift. b. improve productivity by reducing turnover. c. reduce costs by attracting the least-skilled workers to apply for job vacancies. d. All of the above are correct.
Which of the following equations is always correct in an open economy?
a. NX = Y - C - G - I b. NX = S - I c. NX = NCO d. All of the above are correct.