The marginal revenue product of an economic resource for a firm operating in purely competitive product and resource markets:
A. Is the marginal product of the resource divided by the price of the final product
B. Is the increase in total revenue resulting from the addition of one more unit of the resource
C. Is equal to the average revenue product at the lowest point of the average revenue product curve
D. Decreases as the quantity of output decreases
B. Is the increase in total revenue resulting from the addition of one more unit of the resource
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The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, deadweight loss equals ________
A) $1,600,000 B) $200,000 C) $800,000 D) $1,800,000 E) $400,000
As a percentage of GNI, which of the following countries provides the greatest amount of foreign aid?
(a) United Kingdom. (b) United States. (c) Italy. (d) Sweden.
The labor theory of value
A) is what economists believe determines prices today. B) says that wages must always be greater than prices. C) says that the price of a good is determined by the amount of labor required to produce it. D) All of the above.
Table 5.1National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$4,565Exports$740Government purchases of goods and services$1,465Social Security taxes$510Net investment$225Indirect business taxes$520Imports$825Gross investment$865Corporate income taxes$185Personal income taxes$750Corporate retained earnings$45Net foreign factor income$20Government transfer payments to households$690Net interest payments to households$0On the basis of Table 5.1, gross domestic product is
A. $7,635 billion. B. $7,720 billion. C. $6,980 billion. D. $6,810 billion.