Answer:
excuse me but where is the phrase?
Answer: Option (A) is correct.
Explanation:
It was given that consumer prefers Adidas to puma brand soccer cleats but he buys puma brand soccer cleats. This is only because of the price theory and rational consumer choice. We know that a rational consumer will choose a product with a lower price. Both puma and Adidas brand soccer cleats are substitutes, thus, if the price of puma cleats is lower than the Adidas cleats then he should prefer puma brand soccer cleats.
September 11 2001 its eaasy
Answer:
a.
- The quality of goods available to consumers
- The costs of air and water pollution
- The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
b. investment; decreases; no overall change
Explanation:
a. GDP only measures goods that have monetary value so when a good cannot be properly quantified in terms of cash, it is difficult to account for it in GDP. Also, even if the good has monetary value for the Government was unaware of it, they will be unable to use it in the calculation of GDP.
For these reasons, the quality of goods available to consumers, the costs of air and water pollution and the value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government will not be a part of GDP calculation.
b.<em> When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the </em><em><u>investment</u></em><em> component of GDP while also </em><em><u>decreasing</u></em><em> net exports by the same amount. Therefore, the purchase of wood from Brazil causes </em><em><u>no overall change </u></em><em>in US GDP. </em>
Purchasing raw materials for use in production is considered Investment by GDP. However, since it was imported it will reduce Net Exports which means that the transaction would cancel itself out in the GDP calculation as it would both increase investment and decrease Net exports by the same amounts.
