A marginal change is one that（ ）
A. a. is not important for public policy.
B. b. incrementally alters an existing plan.
C. c. makes an outcome inefficient.
D. d. does not influence incentives.
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An American buys a pair of shoes manufactured in Italy. How do the U.S. national income accounts treat the transaction? ( )
A. Net exports and GDP both rise.
B. Net exports and GDP both fall.
C. Net exports fall, while GDP is unchanged.
D. Net exports are unchanged, while GDP rises.
Which is the largest component of GDP? ( )
A. consumption
B. investment
C. government purchases
D. net exports
If a Pennsylvania gun manufacturer raises the price of rifles it sells to the U.S. Army, its price hikes will increase ( )
A. both the CPI and the GDP deflator.
B. neither the CPI nor the GDP deflator.
C. the CPI but not the GDP deflator.
D. the GDP deflator but not the CPI.
When the Japanese car maker Toyota expands one of its car factories in the United States, what is the likely impact of this event on the GDP and GNP of Japan? ( )
A. GDP rises and GNP falls.
B. GNP rises and GDP falls.
C. GDP shows a larger increase than GNP.
D. GNP shows a larger increase than GDP.
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