List and explain the two different approaches used to measure GDP
The two different approaches are: the expenditure approach and the income approach. When using the expenditure approach the amount of money spent by buyers on final goods and services is summed. The spending by the four sectors of the economy (households, businesses, government and foreign sector) is combined to yield the GDP. The income approach is computed by summing the income earned by the different resources that were used to produce a country's goods and services (national income) and then making some adjustments to arrive at GDP.
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Economists believe income inequality results from all the following except
a. government taxes and transfer payments b. labor market discrimination c. unequal distribution of talents in the population d. unequal access to education e. unequal distribution of lifetime accumulated assets
At a taxable income of $40,000 Mari's income tax is $7,400. When her taxable income rises to $45,000 her income tax is $8,400. Based on this information, what is Mari's marginal tax rate?
A) 18.7 percent B) 39 percent C) 10 percent D) 30 percent E) 20 percent
Market-oriented solutions to externalities rarely work.
A. True B. False C. Uncertain
Suppose that a large country imposes optimal tariffs on imports from another large country. The second country then responds with optimal tariffs on imports from the first country. For these two countries, the Nash equilibrium results in ___________ for the first country and __________ for the second country.
a. losses; losses b. gains; gains c. losses; gains d. gains; losses