Intermediate goods are not included in GDP because:
A. certain goods that are used in the production of a final good would be counted twice.
B. the value of goods bought by producers to make something else would be counted twice.
C. the value of goods used by firms to make the goods they sell is included in the firm's product; accounting for the value twice would overestimate GDP.
D. All of these statements are true
D. All of these statements are true
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The figure above shows the loanable funds market. At an interest rate of
A) 4 percent, the quantity supplied of loanable funds equals $18 trillion. B) 8 percent, the quantity demanded of loanable funds exceeds the quantity supplied. C) 6 percent, the quantity demanded of loanable funds equals $14 trillion. D) 8 percent, there is a surplus of loanable funds. E) 4 percent, there is a surplus of loanable funds.
In the long run, monopolistically competitive firms are ________ to perfectly competitive firms because ________
A) similar; both firms produce at the minimum ATC B) similar; both firms make zero economic profit C) not similar; monopolistically competitive firms set P = MC to maximize profits D) not similar; monopolistically competitive firms can make an economic profit and perfectly competitive firms cannot
Which of the following is not a reason why firms experience economies of scale?
A) Workers and managers can become more specialized, enabling them to be more productive. B) As output increases, the managers can begin to have difficulty coordinating the operations of their firms. C) Technology can make it possible to increase production with a smaller increase in at least one input. D) Larger firms may be able to purchase inputs at lower costs than smaller competitors.
If capital is measured on the vertical axis and labor is measured on the horizontal axis, the slope of an isoquant can be interpreted as the
A) rate at which the firm can replace capital with labor without changing the output rate. B) average rate at which the firm can replace capital with labor without changing the output rate. C) marginal product of labor. D) marginal product of capital.