Why do we subtract import spending from total expenditures?
What will be an ideal response?
Import spending is defined as spending on goods and services that are produced in foreign countries. When we total up consumption expenditures, investment spending, and government spending, this total includes spending on goods and services, regardless of where they are produced. That is, it includes some import spending. We must then subtract the value of import spending from total expenditures because we would be including spending on goods and services that is not the result of production of newly produced goods and services in the United States. We want total expenditures to reflect expenditures on final goods and services produced in the domestic economy.
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A) 14 hours B) 22 hours C) 47 hours D) 96 hours
The profit-maximizing level of output and the profit-maximizing price for an oligopolist cannot be calculated when we don't know
A) the type of barrier to entry that exists in the oligopolist's industry. B) the demand curve and the marginal revenue curve of the oligopolist. C) what the concentration ratio for the oligopolist's industry is. D) what the minimum efficient scale in the oligopolist's industry is.
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a. higher wages and fewer workers b. higher wages and more workers c. lower wages and fewer workers d. lower wages and more workers
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a. True b. False Indicate whether the statement is true or false