Another term for the opportunity cost of capital is
A) the normal interest rate.
B) the normal rate of return.
C) a normal profit.
D) a normal wage rate.
Answer: B
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According to the National Bureau of Economic Research, the "two most reliable comprehensive estimates of aggregate domestic production" are ________ when dating the beginning and ending of recessions
A) the level of employment and monthly payroll data B) industrial production and wholesale and retail sales C) gross domestic product and gross domestic income D) real manufacturing production and the natural rate of unemployment
Suppose the market demand curve is perfectly elastic in an increasing-cost industry. If an output tax of t per unit is imposed on all producers of the good, what happens to the market equilibrium outcome?
A) The price paid by buyers increases and output declines B) The price paid by buyers does not change and output decrease C) The price paid by buyers and output increase D) The price paid by buyers and output decrease
Data on the distribution of income among individuals and families in the United States indicate that
a. the power of labor unions and corporations is the major determinant of income inequality. b. the rich stay rich and the poor stay poor from one generation to another. c. much of the inequality in annual income emanates from differences in education, age, hours worked, and family size. d. the difference in annual income emanating from ownership of capital assets is the major source of economic inequality.
The purchase by an American firm of the right to produce a prescription drug patented in Germany best illustrates a:
A. trade flow. B. capital flow. C. goods and services flow. D. technology flow.