The purchase of a computer by a person for household use would be counted in what category of GDP?
A. The purchase is included as part of investment.
B. The purchase is not included in GDP at all, but the value of services the computer gives is included in consumption each year.
C. The purchase is counted as consumption if the computer was manufactured in the United States; otherwise, it is ignored.
D. The purchase is always counted as consumption.
Answer: D
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The Eurodollar market's early growth was stimulated by the Cold War between the United States and U.S.S.R. Why?
A) Soviets feared the U.S. might confiscate dollars place in American banks if conditions of Cold War were to worsen. B) The United States didn't feel safe holding as many dollars in American banks. C) The Cold War did not stimulate the Eurodollar market's early growth. D) Developing technologies required larger money transfers than central banks could handle. E) Soviets developed a new banking system with new allies developed during the tension.
Suppose Vinnie is looking for a month-long vacation rental in San Diego. The first vacation rental Vinnie finds costs $800 per month. If he looks for another vacation rental, there's a 75 percent chance he'll find another one for $800 per month and a 25 percent chance he'll find one for $600 per month. Other than price, all of the vacation rentals are identical. Vinnie's marginal cost of searching for an additional vacation rental is $45. Since searching for another apartment is a ________ gamble, if Vinnie is risk-neutral, then he ________ search for another apartment.
A. better-than-fair; will not B. fair; will not C. fair; will D. better-than-fair; will