Household production, such as baking bread at home, is not included in GDP because it
A) has better quality than the bread in the store.
B) has lower quality than the bread in the store.
C) does not add anything of value to GDP.
D) does not involve a market transaction.
E) is not really production.
D
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"Transfer payments" may be thought of as
A. taxes in reverse. B. wages and salaries. C. expenditures on products. D. purchases of services.
If the idea of herd instinct is true, it suggests that the:
A. efficient-market hypothesis doesn't always hold. B. efficient-market hypothesis does, in fact, hold. C. inefficient-market hypothesis doesn't always hold. D. inefficient-market hypothesis does, in fact, hold.
The price of pineapples has risen dramatically. Which of the following is likely to happen?
A. The quantity of pineapples supplied will increase. B. The quantity of pineapples supplied will decrease. C. The supply of pineapples will decrease. D. The supply of pineapples will increase.
A monopolistically competitive firm can minimize its losses by producing where ________ as long as ________.
A. P = ATC; P > MR B. MR = MC; P > AVC C. P = MR; P > AFC D. P = MC; P > ATC