The main difference between GDP and GNP is that GNP excludes:
a. net income of foreigners
b. consumption of fixed capital.
c. transfer payments.
d. government purchases.
a
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If the MPC = 0.8, and planned autonomous investment increases by $80 billion, then equilibrium real GDP will increase by
A) $320 billion. B) $80 billion. C) $400 billion. D) $64 billion.
When an industry supply curve increases enough to erase economic profits,
a. weaker firms exit the industry b. quantity demanded decreases, but only slightly c. all firms in the industry incur economic losses d. entry of new firms and expansion of existing firms stop e. marginal revenue increases
Under an emissions tax program, the government sets ____; under an emissions permits program, the government sets ____.
A. the price of the right to pollute; the price of the right to pollute B. the price of the right to pollute; the permitted total quantity of pollution C. the permitted total quantity of pollution; the price of the right to pollute D. the permitted total quantity of pollution; the permitted total quantity of pollution
A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its:
A. total variable costs. B. total costs. C. total fixed costs. D. marginal costs.