Briefly explain why gross domestic product is not a welfare measure
What will be an ideal response?
Gross domestic product measures production of goods and services. It is neither a measure of welfare nor a measure of material well-being. GDP does not give any weight to leisure and it also fails to subtract some welfare costs of production.
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On the graph above, an example of a negative demand shock is the movement from point ________ to point ________
A) F; G B) H; I C) F; H D) H; F E) none of the above
Movie theatres offer senior discounts because
a. Seniors have a more elastic demand for movie tickets b. Seniors have lower incomes c. Seniors have a lower opportunity cost of time d. All of the above
Phil sells duck calls in a perfectly competitive market. If duck calls sell for $10 each and average total cost per unit is $11 at the profit-maximizing output level, then in the long run
a. more firms will enter the market. b. some firms will exit from the market. c. the equilibrium price per duck call will fall. d. average total costs will fall.
The primary difference between monopolistic competition and perfect competition is:
A. Both the ease of entry and exit into the industry and the number of firms in the market are correct. B. the number of firms in the market. C. the ease of entry and exit into the industry. D. None of the answers is correct.