Tom Atoe grows fruits and vegetables for home consumption. This activity is:
A. excluded from GDP in order to avoid double counting.
B. excluded from GDP because an intermediate good is involved.
C. productive but is excluded from GDP because no market transaction occurs.
D. included in GDP because it reflects production.
Answer: C
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Consider two banks: Bank A and Bank B. Suppose the value of liabilities of both the banks is equal. However, Bank A is solvent but Bank B is insolvent. This would imply that:
A) the value of Bank B's assets exceeds the value of Bank B's liabilities. B) the value of Bank A's liabilities exceeds the value of Bank A's assets. C) the value of Bank B's assets exceeds the value of Bank A's assets. D) the value of Bank A's assets exceeds the value of Bank B's assets.
Economies of scope are cost reductions achieved by
A) the production of multiple, related products. B) the production of large amounts of a single product. C) limiting the size of the firm. D) increasing firm size.
A "false negative" is
a. When you incorrectly conclude that your hypothesis is true b. When you incorrectly conclude that your hypothesis is false c. When you correctly conclude that your hypothesis is true d. When you correctly conclude that your hypothesis is false
The Statement of Cash Flows lists:
a. Operating, Investing, and Financing Activity b. Assets, Liabilities, and Owner's Equity c. Income, Expenses, and Liabilities d. Gains, Losses, and Net Income