Suppose that you are planning to buy a new cellphone. Your choice is a new Samsung phone or HTC model. Samsung phones are manufactured in Korea and HTC phones are manufactured in Taiwan. Assuming that the price of each phone is the same, will your purchase of the Samsung or the HTC affect U.S. GDP differently?
a. No, both have the same impact: your purchase will increase consumption expenditures
and decrease net exports by the same amount.
b. Yes. This depends upon which cellphone carrier you choose.
c. No, because Samsung's production only affects Korea's GDP; and HTC's production only impacts Taiwan's GDP.
d. Yes. The country from which a product is imported has different effects on U.S. GDP because it depends upon trade agreements with the countries.
a
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The use of collateral
A) allows banks to charge higher interest rates on loans. B) makes it more costly for borrowers to take advantage of their asymmetric information. C) makes it more costly for lenders to take advantage of their asymmetric information. D) has important tax implications for both borrowers and lenders.
Consider a production possibilities curve for an economy producing bicycles and video game players. It is possible to increase the production of bicycles without sacrificing video game players if:
a. the production possibilities curve shifts outward due to technological progress b. the production possibilities curve shifts outward due to increased immigration (which enlarges the labor force). c. the economy moves from a point inside the production possibilities curve to a point on the curve. d. any of the above occur.
If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?
a. demand will increase b. quantity demanded will increase c. demand will decrease d. quantity demanded will decrease e. supply will decrease
Growth in real wage rates is closely tied to growth in labor productivity
a. True b. False Indicate whether the statement is true or false