Calculating the value of an economy is more complex than just adding up the value of every single thing that is produced because that would lead to:
A. overcounting, as the value of intermediate products would be counted twice.
B. overcounting, as there is a mark-up in everything that is sold.
C. undercounting, as most goods are not sold in retail markets.
D. undercounting, as only observable markets can be recorded.
A. overcounting, as the value of intermediate products would be counted twice.
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A) The demand for shoes in Cadbia is given by Qd = 300 - 25P and the supply of shoes is given by Qs = 100 + 25P
If the world price of shoes is $8, will Cadbia import or export shoes? b) The demand for dark chocolates in Cadbia is given by Qd = 300 - 10P and the supply of dark chocolates is given by Qs = 100 + 10 P. If the world price of dark chocolates is $6, will Cadbia import or export chocolates?
In the term "Free Banking," the "free" means:
a. the freedom of any state legislature to charter a bank. b. the freedom of banks to mint U.S. coins. c. the freedom of anyone to start a bank. d. None of the above are correct.
The owners of a business
a. are paid the market rate of return for resources they supply to the firm. b. are residual income claimants. c. have little incentive to monitor shirking on the part of employees. d. have little incentive to provide their employees with an incentive system that encourages operational efficiency.
Market signals
A) are ways of conveying information. B) are market noise that confuses buyers and sellers. C) are best ignored by investors. D) always lead to economic losses.