Which of the following statements is false?
A) For purposes of computing GDP, the purchases of new residential housing are considered investment although it is undertaken by the household sector.
B) Consumption includes spending on durable goods but not spending on services.
C) Investment includes fixed investment but not inventory investment.
D) b and c
D
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The voluntary export restraints on autos by Japan in the early 1980s were:
A. unlike a tariff and did not affect the price of imports. B. prohibited by the WTO. C. a bad deal for the U.S. consumers. D. unlike an import quota and did not affect the price of cars imported.
Which of the following is a common mistake made by consumers?
A) taking into account the implicit costs of an activity B) ignoring sunk costs C) being overly optimistic about their future behavior D) being overly pessimistic about their future behavior
Joe's income is $500, the price of food (F) is $2 per unit, and the price of shelter (S) is $100. Which of the following represents his budget constraint?
A) 500 = 100F + 2S B) 500 = 2F + 100S C) S = 500 - 2F D) All of the above.
The first difference of the logarithm of Yt equals
A) the first difference of Y. B) the difference between the lead and the lag of Y. C) the approximately the growth rate of Y when the growth rate is small. D) the growth rate of Y exactly.