Which of the following accurately indicates how the recent outbreaks of terrorism have influenced the GDP of western nations?
a. Additional expenditures on security designed to protect individuals from terrorist attacks are subtracted from GDP.
b. Additional expenditures on security designed to protect individuals from terrorist attacks are added to GDP as part of output.
c. Since expenditures on the prevention of terrorism do not contribute to the well-being of individuals, they exert no impact on GDP.
d. Since terrorism is merely a redistribution of output, expenditures on the prevention of terrorism do not contribute to GDP.
B
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Refer to Figure 13-1. The marginal revenue from the increase in price from P0 to P1 equals
A) the area (A - D). B) the area (B + D - A). C) the area (C - B). D) the area A.
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. If the nation uses all of its resources to produce only wheat, then its production combination will be:
A. A
B. B
C. E
D. F