GDP and derivative measures like GDP per capita are frequently criticized because of its limited scope. While it is limited in what id directly measures, these criticisms are often misplaced because
A) GDP is not really emphasized in macroeconomics anymore; instead, substitute measures have become more widely used
B) GDP is closely correlated with non-monetary outcomes that people clearly value such as life expectancy, infant mortality, and literacy
C) GDP actually does directly incorporate the value and quality of a variety of items that are not actually bought and sold such as leisure
D) GDP in nominal terms does not include household production or leisure but real GDP does
Answer: B) GDP is closely correlated with non-monetary outcomes that people clearly value such as life expectancy, infant mortality, and literacy
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In monopolistic competition, firms may differentiate their products in many ways except on the basis of:
a. quality. b. style. c. price. d. packaging. e. guarantees.
Which of the following is not included in a nation's balance of payments?
a. Imports and exports of services. b. International interest and dividend earnings. c. International gifts. d. International loans. e. All of the above are included in the balance of payments.
Insurance companies try to mitigate the problem of adverse selection by:
A. charging a higher premium to groups with similar ages or behaviors that correlate with risky behavior. B. asking potential customers a seemingly endless list of questions to gain as much information as they can about the person's risk characteristics. C. charge a higher price to all individuals to cover the lack of information. D. All of these statements are true.
A recent antidumping case charged Canadian tomato producers with dumping tomatoes on the U.S. market. In order for the United States to impose antidumping duties, Canadian tomatoes must be sold at _______ than their fair value in the United States, and there must be injury to the ________ tomato industry.
a. more; U.S. b. less; U.S. c. more; Canadian d. less; Canadian