GDP tends to overstate economic well-being because it takes into account ________.
A. all of the illegal activities conducted by organized crime in the economy
B. total spending to deal with the adverse health effects of some products
C. the personal labor time that car owners spend working on car repairs and maintenance of their vehicles
D. spending on intermediate goods that are used to produce final goods
Answer: B
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Refer to Figure 28-9. Fed Chairman Paul Volcker's response to the ________ of the late 1970s is depicted in the figure above as a movement from C to D to A
A) appreciation of the dollar B) high inflation C) high unemployment D) deflation
Which one of the following is not a function of a Central Bank?
(a) Issuer of currency. (b) Banker to the general public. (c) Banker to the government. (d) Lender of last resort.
A concentration ratio gives
A) the average size of the firms in an industry. B) the total sales of four or eight of the mid-sized firms in the industry. C) the percentage of all sales contributed by the four or eight largest firms in the industry. D) the sales of the four largest firms in the industry divided by the sales of the eight largest firms in the industry.
Suppose that the quantity of hamburgers is measured along the vertical axis and that the number of bags of popcorn is measured along the horizontal axis. The budget constraint has a vertical intercept of 10 hamburgers, and the slope of the line is -1. If the price of popcorn doubles, we know that
A. the vertical axis of the budget line shifts to 5 hamburgers. B. the consumer will buy half as many bags of popcorn as before. C. the new equilibrium will have a marginal rate of substitution of -2. D. the new equilibrium will have a marginal rate of substitution of -0.5.