Related to the Economics in Practice on P

question 149

Multiple Choice

Related to the Economics in Practice on p. 427: The value of the fees charged by eBay to sellers who use eBay is

• A) counted in U.S. GDP.
• B) only counted in U.S. GDP if the seller is in the U.S.
• C) only counted in U.S. GDP if the product being sold is new.
• D) never counted in U.S. GDP

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Definitions:

Specialization And Trade

In economics, specialization refers to the practice of focusing production on a limited scope of products or services to gain efficiency, while trade involves the exchange of these goods or services between individuals or entities, often leading to increased overall economic welfare.

Pizzas

A popular dish of Italian origin consisting of a usually round, flat base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients baked at a high temperature.

Production Possibilities Frontier

represents the maximum combination of goods and services that can be produced in an economy, given its resources and technology level.

Bowed Outward

Describes the shape of a production possibility frontier that reflects increasing opportunity costs as more of one good is produced.