Double counting in the national income accounts will occur if GDP is computed by summing up:
A. all sales.
B. final output sales.
C. the income earned by a country's residents.
D. value added.
Answer: A
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"Trade liberalization should precede capital account liberalization." Discuss
What will be an ideal response?
Assume Qs represents the quantity supplied at a given price and Qd represents the quantity demanded at the same given price. Which of the following market conditions produce a downward movement of the price?
a. Qs = 1,000, Qd = 750 b. Qs = 750, Qd = 750. c. Qs = 750, Qd = 1,000 d. Qs = 1,000, Qd = 1,000.
In the short run, a firm will eventually experience rising average total costs because of
a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing returns.
When two variables have a negative correlation and the x-variable decreases,
a. the y-variable increases. b. the y-variable decreases. c. the y-variable stays the same. d. the x-variable can never be positive.