Which of the following market transactions are excluded from the computation of U.S. GDP?
a. Purchases of products such as wine, beer, and hard liquor by a household
b. New purchases that a resident of one state makes in a different state
c. Money spent on pollution cleanup and other restorative projects
d. Purchase of raw materials by a firm for further reprocessing
d
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To maximize the economic pie, government should
A) provide only those public goods whose benefits outweigh their costs. B) provide no public goods. C) provide only those public goods whose costs outweigh their benefits. D) provide all possible pure public goods.
A rise in the price level produces a ________ the aggregate supply curve
A) rightward shift of B) movement downward along C) leftward shift of D) movement upward along E) rightward shift of the aggregate supply curve and a movement downward along
Because the marginal cost of labor curve lies above the labor supply curve, a monopsony will pay a wage that is
A) equal to the wage paid in a competitive market. B) equal to value of marginal product. C) greater than value of marginal product. D) less than the wage paid in a competitive market.
The Toys-R-Danger-Us Toy Company can produce 500 water pistols for a total cost of $1,400 . If the variable cost of producing 500 water pistols is $1,300, then
a. fixed cost must be $100 b. marginal cost must be $1,300 c. marginal cost must be increasing d. average variable cost must be decreasing e. average fixed cost must be constant