The value-added approach to measuring GDP involves adding up the value of the
a. sales revenues of firms
b. payments for the intermediate goods used by all firms
c. the wages of the workers used to produce goods
d. sales of all firms, minus all their purchases of intermediate goods
e. values of final goods minus the value of all services
D
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What was the decline in the value of mutual funds held by households during the depths of the financial crisis, between the third quarter of 2008 and the first quarter of 2009
A) $2 million B) $2 billion C) $200 billion D) $2 trillion
When positive externalities exist, the private market equilibrium represents a
A) market price which is too low and a market quantity which is too low. B) market price which is too low and a market quantity which is too high. C) market price which is too high and a market quantity which is too low. D) market price which is too high and a market quantity which is too high.
Which of the following are ways to ration goods and services?
A) price B) physical force C) political power D) All of the above are correct.
Incentives are not likely to be a problem if:
A. all actions are observable. B. actions are not observable. C. workers' efforts are not contractible. D. only some actions are observable.