Computation of GDP by the expenditures method would include the purchase of:
A. Fertilizer by a farmer
B. Cement by a construction company
C. Land by the U.S. Department of Interior
D. Government bonds by a commercial bank
C. Land by the U.S. Department of Interior
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When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine
A) what tax amount should be charged. B) who should be exempt from the tax. C) if the tax would be allocated equitably. D) how much revenue will the tax generate.
Suppose that the interest rate available to you on a long-term bond is 4 percent. If you hold $1,000 of your wealth in currency instead of in the form of a bond, the annual opportunity cost is
A) $0.04. B) $4. C) $40. D) $400.
The most anyone is willing to pay for another purse is $30. Currently the price of a purse is $40, and the cost of producing another purse is $50. The marginal benefit of a purse is
A) $50. B) $40. C) $30. D) an amount not given in the answers above.
Waterview Corp, a local water supplier, incurs a fairly minimal marginal cost to provide water services to an additional home in its area of operation. This implies that the water supplier: a. experiences economies of scale
b. has inferior technology. c. has an infinite stock of raw materials. d. practices perfect price discrimination.