Which of the following activities will not be included in the GDP of an economy?
a. Sam buying a toy car imported from China from a toy shop in Boston
b. Jane paying a certain amount to Moe to mow her lawn
c. Bob buying a pound of cherries to garnish the cakes made in his bakery shop
d. Corey paying his landlord rent for his new apartment
c
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Neoclassical economics does not hold which of the following assumptions?
A. People are fundamentally rational B. People can make errors initially, but they learn quickly C. People's errors are random and rare D. People make regularly-repeated mistakes
Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs. The restaurant earns $1.3 million in revenues. Based on this information, what is the accounting profit for Laura's Pizza Place?
A) $200,000 B) $400,000 C) $500,000 D) $900,000
What do the foreign leaders investing in the industrial enclaves of developing countries of today have in common with those foreign investors who helped colonize North America?
(a) Both sets of leaders exploit the labor of the indigenous people. (b) Both expect to make personal and business sacrifices, take on risks and gain something of high expected value. (c) Both are driven primarily by their desires to extract materials for high profits. (d) Both strive to boost agricultural profits in international markets in the developing countries in which they invest.
The primary source of revenue for local governments is _____
a. income taxation b. sales taxation c. estate taxation d. property taxation