GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services, but GDP cannot measure both at the same time

The PDV of a perpetuity with a yearly payment of $500 at an interest rate of 5% is

A) $100. B) $5,000. C) $25,000. D) $10,000. E) $100,000.

Economic analysis suggests that gains from specialization and exchange

a. will not be realized unless a central planning authority requires that all goods be produced by the low opportunity cost supplier. b. will be realized if individuals are allowed to pursue goals that are in their own self-interest. c. will not be realized unless business firms employ economists when making decisions about the proper combination of resources to utilize in the production process. d. will be realized if individuals place the public interest above the pursuit of their own self-interest.