A disadvantage of chain-weighting is that
A) past inflation rates change whenever the base year changes.
B) past growth rates of real GDP change whenever the base year changes.
C) it causes output growth to slow.
D) the components of real GDP don't sum to real GDP.
D
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The primary motivation for private foreign investment in developing nations is
A) to eradicate poverty. B) to improve the standard of living for workers. C) the potential for high rates of return. D) to do research in countries with fewer social regulations.
Imposing an employment tax leads to
A) a decreased supply of labor. B) more employment. C) decreased potential output in the economy. D) greater demand for labor.
Financial intermediaries are able to act as delegated monitors for individual savers because
A) other investors are unable to gain a free ride on their monitoring efforts. B) borrowers consider this role to be traditional for financial intermediaries and are willing to put up with it. C) the federal government has granted them waivers from laws protecting privacy. D) they employ a vast network of private detectives to carry out their monitoring role.
Abby maximizes utility by allocating time among leisure, market work, and nonmarket work so that the
a. total utility of each is equal b. average utility of each is equal c. total utility per hour of each is equal d. marginal utility per hour of each is equal e. maximum amount of goods and services can be acquired