Explain the difference between GDP and GNP
What will be an ideal response?
GDP is the market value of all final goods and services produced in a country during a given period of time, even if the production is owned by citizens of other countries. GNP is the value of all final goods and services produced by residents of a country during a given period of time, even if the production takes place outside the country. GDP - GNP = net factor payments.
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Under earnings-sharing regulation, if a firm's profits ________ above a certain level, they must be shared with the firm's ________
A) rise; customers B) fall; customers C) rise; suppliers D) fall; suppliers E) rise; competitors
Addressing the natural rate of unemployment is
a. straightforward in theory but difficult in practice. b. straightforward in theory and in practice. c. difficult in theory and in practice. d. straightforward in practice but difficult in theory.
The unanimity property states that the ranking between any two outcomes should not depend on whether some third outcome is available
a. True b. False Indicate whether the statement is true or false
With flexible exchange rates, an increase in U.S. interest rates can be expected to ________.
A. lower the foreign exchange value of the dollar B. adversely affect U.S. exporters C. cause a net outflow of foreign capital from the United States D. encourage investment spending by U.S. firms