"The amount of new stocks and bonds issued in a year adds to the country's GDP." Is this assertion correct or incorrect? Explain your answer
What will be an ideal response?
The assertion is incorrect. Stocks and bonds are not counted in the country's GDP. GDP measures the production of final goods and services. Issuing new stocks or bonds does not produce a final good or service and so stocks and bonds are not included in GDP.
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(In/Y) is quite ________ in the U.S. economy, and ________ stay away from its long-run average for several consecutive years
A) stable, yet it can B) stable, so it does not C) volatile, yet it can D) volatile, so it does not
A firm's implicit costs are
a. its maintenance costs b. its paid-out costs of production c. its main source of executive costs d. irrelevant to the determination of economic profit e. opportunity costs of production that do not involve money outlays
A monopoly restricts output and charges a higher price than other types of firms
a. True b. False Indicate whether the statement is true or false
Underground activities are not counted in GDP because
A) some underground activities are illegal and the government doesn't want to place, for instance, drug dealers on an equal footing with small businesses. B) there are no written records of underground activities. C) of a decision made in the 1930s and no one has gotten around to changing it yet. D) although it is possible to accurately measure underground activities, it is harder than measuring above-ground activities because with the latter, one doesn't have to dig as deep.