Is every product produced in the United States included in U.S. gross domestic product?
What will be an ideal response?
No, not every product produced is included in U.S. GDP. For instance, goods produced as intermediate goods are excluded. Only final goods and services are included. In addition, GDP counts only goods traded in markets, so goods and services that people produce for their own use are excluded.
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Which of the following is a predictable impact of the Patient Protection and Affordable Care Act?
a. A reduction in the prices of health care services. b. A reduction in total expenditures on health care. c. An increase in the number of part-time employees relative to full-time workers. d. A lower overall rate of unemployment.
In theory, in the long run, monopolistically competitive firms earn zero profits.However, in reality there are some ways by which a firm can avoid losing profits. Which of the following is one such way?
A) gradually increase the mark-up on the goods produced B) lower the price of its products to expand its market share C) identify new markets and develop products precisely for those markets D) find a market niche and keep it as narrow as possible so as to prevent other producers from entering this market segment
A pure public good is _____ and _____
a. nonexcludable; private in consumption b. excludable; private in consumption c. excludable; collective in consumption d. nonexcludable; collective in consumption
Which of the following is true under natural monopoly?
A. The marginal cost curve will be equal to the average cost curve. B. The monopolist will set price equal to marginal cost and will earn economic profits. C. Economies of scale exist. D. Output is produced under conditions of constant cost.