Double counting occurs when the price of both final and intermediate goods is included in the calculation of GDP
a. True
b. False
Indicate whether the statement is true or false
True
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The United States possesses a large amount of human capital. As a result of this fact, in the United States there is a
A) large amount of machinery and equipment. B) large number of people and a great deal of land. C) highly skilled and educated labor force. D) large number of kind and generous humans. E) large amount of machinery (capital) that is run by people (humans).
Which of the following would cause a decrease in the price of automobiles?
A.) A technological advance in automobile manufacturing. B.) An increase in the wages paid to automobile assembly line workers. C.) A decrease in the cost of gasoline. D.) An increase in the number of buyers.
Which of the following is the largest single component of the market basket used to compute the consumer price index (CPI)?
A. food and beverages B. housing C. transportation D. medical care
Refer to Figure 5.1. Observe the three isoquants depicted and determine which of the following statements is true.
A. K and L are substitutes in cases (1) and (2). B. K and L are substitutes in cases (1) and (3). C. K and L are substitutes in each of the three cases. D. K and L are substitutes in cases (2) and (3).