The income approach to measuring GDP sums together
A) compensation of employees, rental income, corporate profits, net interest, proprietors' income, subsidies paid by the government, indirect taxes paid, and depreciation.
B) compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and depreciation and subtracts subsidies paid by the government.
C) the sales of each firm in the economy.
D) the costs of each firm in the economy and then subtracts indirect business taxes and depreciation.
B
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Figure 5-12
In Figure 5-12, the move in the consumer equilibrium from A to B shows that
A. beer is an inferior good, but wine is a normal good. B. wine is an inferior good, but beer is a normal good. C. both beer and wine are normal goods. D. both beer and wine are inferior goods.
In the past the federal government often employed what is called a "command-and-control" approach to the reduction of pollution emissions. Many economists are critical of this approach because
A) they believe a market-based approach will reduce pollution more efficiently. B) it does not lead to significant reductions in pollution. C) the "command-and-control" approach leads to negative externalities. D) the "command-and-control" approach is designed to help firms at the expense of consumers.
The typical production possibilities curve is:
A. an upsloping line that is bowed out from the origin. B. a downsloping line that is bowed in toward the origin. C. a downsloping line that is bowed out from the origin. D. a straight upsloping line.
When many substitutes exist for a good, demand will be
A. unit-elastic. B. perfectly unit-elastic. C. inelastic. D. elastic.