Consumption of fixed capital (depreciation) can be determined by ________.
A. subtracting net investment from real GDP
B. subtracting depreciation from net investment
C. adding net investment to real GDP
D. subtracting net investment from gross investment
Answer: D
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A firm uses workers, land, and machinery for its production process. Which of the following statements is then true?
A) The only way the firm can change its output level in the long run is by changing the number of workers. B) The only way the firm can change its output level in the long run is by changing the amount of land it owns. C) The only way the firm can change its output level in the long run is by changing the amount of machinery. D) The firm can change its output level in the long run by changing any or all of its three inputs.
Price discrimination is based on self-selection:
A. when a firm can distinguish consumers with a high versus low willingness to pay. B. when a firm offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay. C. when a monopolist knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit. D. when monopolists decide for themselves whether to engage in price discrimination.
Golf course developers who buy the land around the golf course they build are attempting to: a. impose external costs on non-consenting third parties. b. internalize external benefits
c. turn a private good into a public good. d. internalize external costs.
This curve shows there is a(n) ______ relationship between the quantity of real GDP supplied and the overall price level.
a. neutral
b. positive
c. inverse
d. complementary