When IBM, an American firm, produces computer chips in another country, this production is not included in U.S. GDP because the production did not take place in the United States
Indicate whether the statement is true or false
TRUE
You might also like to view...
Compared to consumption, investment is a much ________ component of GDP and is much more ________
A) smaller; volatile B) larger; volatile C) larger; stable D) smaller; stable
Refer to Figure 14-8 Use the decision tree to determine whether Microsoft should deter Toshiba from entering the market for electronic book readers (e-readers). Assume that each firm must earn a 20% return on investment to break even
Explain Microsoft's decision process.
Given the reserve-holding ratio e and the fraction of deposits held as cash c, the deposit multiplier becomes
A) e - c. B) 1/(e - c). C) e/c. D) ec. E) 1/(e + c).
The hypothesis that people are nearly, but not fully rational, cannot possibly fully examine every available choice, and utilize simple rules of thumb in making decisions is known as the
A) irrationality hypothesis. B) ceteris paribus hypothesis. C) individual aggregation hypothesis. D) bounded rationality hypothesis.