Which of the following is included in M2?

If a toy store overestimates the demand for a toy in 2004 and, as a result, has an unexpectedly large number of toys in stock at the end of the year, the value of the inventory of these toys will be considered as: a. investment in 2004

b. investment in 2005. c. consumption in 2004. d. consumption in 2005. e. a part of GDP when the toys are sold.

Which of the following is true? a. Economic reasoning implies that individuals will acquire all possible information about a choice before making it. b. It is not rational for people to make decisions that could turn out to be mistaken

c. Reducing information costs to consumers and suppliers could permit more intelligent market decisions and lead to greater satisfaction. d. Occupational licensing laws generally act to protect misinformed consumers from getting shoddy services and enhances competition, leading to lower prices.