To compute national income from GDP,
A. national income is first calculated, and then depreciation of capital and indirect business taxes are subtracted from it to get GDP.
B. GDP is first calculated, and then gross private domestic investment is subtracted from it to get national income.
C. GDP is first calculated, and then capital depreciation and proprietors' income are subtracted from it to get national income.
D. GDP is first calculated, and then depreciation of capital is subtracted from it to get national income.
Answer: D
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For a given supply curve, an increase in demand will typically
a. increase price, but quantity could change in either direction b. increase quantity, but price could change in either direction c. increase price but leave quantity unchanged d. decrease both quantity and price e. increase both quantity and price
The formal study of economics began when Adam Smith (1723-1790) published his famous book The Wealth of Nations in 1776. In the first chapter of The Wealth of Nations, Smith introduces the idea of the division of labor. Define "division of labor" and illustrate with an example.
What will be an ideal response?