If an artisan sells handmade jewelry at a craft fair
A. and does not report the income earned to the Internal Revenue Service, GDP is understated.
B. and does not report the income earned to the Internal Revenue Service, GDP is overstated.
C. and reports the income earned to the Internal Revenue Service, GDP is understated.
D. and reports the income earned to the Internal Revenue Service, GDP is overstated.
Answer: A
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Very Technical is a firm that sells computing equipment. It costs Very Technical $100 for each order of computer monitors and the variable cost of placing an order is $4 per monitor. Very Technical pays an annual holding cost of $10 per monitor. If Very Technical sells 6,000 computer monitors a year and they order 500 monitors, what is the total annual cost of the monitors?
A) $27,700 B) $21,500 C) $32,800 D) $35,700
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. In a closed economy, who has the comparative advantage in catching fish?
A. Sheila and Jim B. Sheila C. Jim D. Neither of them
U.S. firms collectively devote the largest portion of their total R&D spending to:
A. applied research (pursuing invention). B. basic scientific research. C. innovation and diffusion. D. financing startup firms.
U.S. government regulation of social and economic activity
A. has increased steadily since 1970. B. is confined to antitrust law. C. only began after World War II. D. costs less now than it did in the 1980s.