Which of the following is treated differently in computations of GNP as compared with GDP?
A. Intermediate goods.
B. The value of services performed by housewives.
C. Goods produced by U.S. firms located in foreign countries.
D. Sales in the underground economy.
Answer: C
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Brand name drugs are chemically identical to their generic counterparts. Yet, consumers often prefer the brand name product to the generic product. Making consumers think that a brand name drug differs from its generic counterpart is an example of
A) product differentiation. B) perfect competition. C) oligopolistic behavior. D) price taking behavior.
Economic historians do not believe there was a shortage of money in colonial America for which of the following reasons?
(a) Interest rates were not unreasonably high. (b) Long-term prices were rising. (c) The colonial economy was growing in real terms. (d) All of the above.