According to economists, changes in the quality of goods
a. leads to overestimates of the measured value of GDP because these goods last for shorter amounts of time
b. leads to underestimates of the measured value of GDP because these goods last for shorter amounts of time
c. leads to overestimates of the measured value of GDP because these goods last for longer amounts of time
d. have no effect on the measured value of GDP
e. leads to underestimates of the measured value of GDP because these goods last for longer amounts of time
E
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Refer to the scenario above. What is likely to be the impact on Firm A's sales if Firm A decides to sponsor the event while Firm B decides not to sponsor the event?
A) A 5% increase in sales B) A 2% increase in sales C) A 7% increase in sales D) A 0% increase in sales
According to the monetarist theory, an increase in government spending would have
a. only weak effects on both output and the price level. b. a weak effect on output with a strong effect on the price level. c. a weak effect on the price level but a strong output effect. d. stronger effects on output if financed with increases in the money supply. e. both a and d.
Assume that a firm's marginal revenue curve intersects the rising portion of the marginal cost curve at 100 units of output. At this output level, a profit-maximizing firm's total cost is $1,000 . If the price of the product is $10 per unit, the firm will earn an economic profit of:
a. zero. b. $400. c. more than zero but less than $100. d. $100. e. more than $100.
Calculate the discounted value of $2,875 to be received from a bank a year later at an interest of 15 percent per annum
a. $2,625 b. $2,075 c. $2,015 d. $2,500