Goodyear produces tires for automobiles, 50,000 in all. Suppose 40,000 go on new cars and are sold as part of each car, while the other 10,000 are produced as replacement tires and are sold individually. How many tires would be counted in current GDP?
a. 50,000 . because everything produced is counted
b. 40,000 because only the ones on new cars are counted
c. 10,000 because 40,000 will be counted in the value of the new cars
d. 0 because they are all intermediate goods
e. 10,000 because they are the only "final" goods and services in the total
C
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The HeckscherOhlin model assumes that production techniques within a nation use the factors of production:
a. at different intensities depending on changing technology and which nation you are discussing. b. at different intensities for each industry, so that one is more or less intensive in that factor than the other. c. at the same intensity for each industry—for example, the ratio of capital to labor is the same for every industry in the nation. d. in no definite pattern.
The government makes all economic decisions in a centrally planned economy
Indicate whether the statement is true or false