The most meaningful way to compare per capita Gross Domestic Product (GDP) across countries is to
A. first adjust each country's per capita Gross Domestic Product (GDP) to exclude all the goods and services that are not exchanged with other countries.
B. first use purchasing power parity to factor in each country's true cost of living.
C. use foreign exchange rates to convert each country's per capita Gross Domestic Product (GDP) into dollars. Then compare.
D. assume that the cost of living in each country is the same as the United States' cost of living.
Answer: B
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A person holding dollar deposits during the devaluation of the dollar would
A) enjoy a monetary gain. B) see the foreign currency value of dollar assets increase by the amount of the exchange rate change. C) shift their wealth into domestic investments. D) suffer a monetary loss and see the foreign currency value of dollar assets decrease by the amount of the exchange rate change. E) see no change in their investments.
The market mechanism provides a financial incentive for firms to minimize the pollution they create
a. True b. False Indicate whether the statement is true or false
A country has a comparative advantage in producing a good if it is relatively more efficient at making it.
a. true b. false
Refer to Table 20.1. George is a single taxpayer with an income of $65,000. If George had received a raise of $3,500 at the beginning of the year, his marginal tax rate would be
A) 22.99%. B) 23.75%. C) 38%. D) 95%.