In calculating the GDP national income accountants:
a) treat inventory changes as an adjustment to personal consumption expenditures.
b) ignore inventories because they do not represent final goods.
c) subtract increases in inventories or add decreases in inventories.
d) add increases in inventories or subtract decreases in inventories.
d) add increases in inventories or subtract decreases in inventories.
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"If the marginal social benefit of a car exceeds the marginal social cost of a car, we are producing too many cars." True or false? Explain
Indicate whether the statement is true or false
Although the long-run equilibrium price of oil is $80 per barrel, some producers have much lower costs because their oil reserves are relatively close to the surface and are easier to extract
If the low-cost producers have a minimum LAC equal to $20 per barrel, then the difference ($60 per barrel) is: A) an above-normal economic profit. B) an economic rent due to the scarcity of low-cost oil reserves. C) a profit that will go to zero as new oil producers enter the market. D) none of the above
A bank finds itself short of required reserves and therefore borrows from another commercial bank. The interest rate on this loan is: a. zero
b. the prime rate. c. the discount rate. d. the federal funds rate. e. the required reserve ratio.
People who create new economic enterprises are called:
A. engineers. B. entrepreneurs. C. owners of physical capital. D. technology experts.