The goods and services that count toward GDP are defined in terms of:
A. the location of production, not the citizenship of the producer.
B. the citizenship of the producer, not the location of production.
C. citizens producing within a country's borders.
D. total production of companies owned by citizens, regardless of the actual location of production.
A. the location of production, not the citizenship of the producer.
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In order to help the economy recover from a recession using fiscal policy, the government can ________ so that aggregate demand increases
A) cut taxes B) raise taxes C) cut government expenditure on goods and services D) raise interest rates E) decrease the quantity of money
Firms organize production by using a mix of
A) command and incentive systems. B) market and agency systems. C) command and market systems. D) incentive and agency systems.
What is not true when thinking of the firm's objective as a cost-minimization problem rather than as a profit-maximization problem?
A. The slope at any point on any isoquant reveals the marginal rate of technical substitution. B. The firm chooses to employ either labor or capital, depending on which factor is cheaper. C. The price of the output good does not enter the decision of how much labor or capital to employ once the total amount of output to produce has been determined. D. The firm chooses a particular level of output to produce. E. The firm will choose labor and capital inputs so that the marginal productivity of labor relative to the marginal productivity of capital equals the price of labor relative to the price of capital.
The business cycle dating committee determines when peaks and troughs occur by looking at
A. mainly at real GDP figures. B. mainly at the unemployment rate. C. data from our economy and comparing it to data from other major nations. D. mainly at employment, industrial production, personal income, and manufacturing and trade revenue.