Jake, Sr. sells the family business, a factory that produces snake oil, to Jake, Jr., for $100, even though the factory has been assessed at $400,000. How will this transaction affect GDP?
A. Investment will increase by $100.
B. GDP will not be affected by the transaction.
C. Consumption will increase by $400,000.
D. Investment will increase by $400,000.
Answer: B
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A monopoly
a. can increase the price and increase output at the same time b. can charge any price it wants and still sell all of its output c. can sell any output it produces provided it accepts the market price d. must lower the price in order to increase output e. faces a perfectly elastic demand curve
What is meant by an objective?
a) A policy b) A way of reaching a target c) A target d) A strategy
The marginal utility of a unit of good X
A. is always greater than the total utility of X. B. is always less than the average utility of X. C. generally depends on how much X the consumer already has. D. is always equal to the price of X.
If a firm has implicit costs as well as explicit costs,
A) accounting profit will be zero. B) net income will always be greater than accounting profit. C) net income will always be less than accounting profit. D) economic profit will be less than accounting profit.