To reconcile the difference between GNP and national income, the U.S. Department of Commerce (which calculates these things)
a. adds depreciation of capital and nonfactor charges to national income
b. adds depreciation of capital to and subtracts indirect business taxes from national income
c. subtracts depreciation of capital and indirect business taxes from national income
d. subtracts depreciation of capital from and adds indirect business taxes to national income
e. subtracts depreciation of capital and indirect business taxes from GDP
A
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The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. What is the marginal utility per dollar from magazines when the sixth magazine is purchased?
A) 36 units B) 15 units C) 9 units D) 5 units
A tax may be used as a corrective device in the case of a negative externality because it will __________ marginal private costs and __________ supply.
A. increase; decrease B. increase; increase C. decrease; decrease D. decrease; increase
Suppose you observe that the price of movie admissions decline and that the number of people attending movies declines as well. If only the demand curve or the supply curve shifts, this suggests that
A) movies are a normal good and incomes have increased. B) high salaries for Hollywood actors have increased the cost of movie making. C) movie theaters have experienced an increase in their operating costs due to increases in the minimum wage. D) admission prices for other types of entertainment, such as live shows and sporting events, have also declined.
The part of a business cycle that follows a peak is the:
a. trough phase of the cycle. b. break-even point of the cycle. c. peak period of the cycle. d. recessionary phase of the cycle. e. expansionary phase of the cycle.