The components of the expenditure method to measure GDP include all of the following EXCEPT
A. net exports
B. government purchases of goods and services
C. changes in the stocks of inventories
D. the implicit payments for unpaid household work
Ans: D. the implicit payments for unpaid household work
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In order to avoid principal-agent problems, McDonald's uses all but one of the following franchising tactics. Which is the exception?
a. It does not advertise for franchisees. b. Franchisees must put up 40 percent of the investment themselves. c. Franchisees must undergo a preliminary training period, followed by a 12- to 18-month training program. d. Franchisees must already have another fast-food restaurant franchise. e. Franchisees are required to work full-time daily in their restaurant.
A compensating differential is
a. a difference in pay due to nonmonetary characteristics of different jobs. b. a high wage paid by employers to entice workers to be more productive. c. the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage. d. due only to difference in the productivity of workers with different skills.
Which of the following are positive economic statements and which are normative economic statements?
a. An increase in the minimum wage causes unemployment. b. The government should raise the minimum wage above $7.25 per hour. c. The prolonged recession has caused the unemployment rate to reach a 30-year high. d. Interest rates need to be lower for the economy to emerge from the recession. e. Inflation has decreased since the onset of the recession. f. Once the recession has ended, interest rates should increase to assure that inflation does not go up. What will be an ideal response?
In the 1990s
A) growth of M1 was more stable than growth of nominal GDP, and velocity soared through most of the period. B) growth of nominal GDP was more stable than growth of M1, and velocity soared through most of the period. C) growth of M1 was more stable than growth of nominal GDP, and velocity plummeted through most of the period. D) growth of nominal GDP was more stable than growth of M1, and velocity plummeted through most of the period.