Refer to the above figure. If real Gross Domestic Product (GDP) is $2 trillion, then
A. the level of total planned expenditures is greater than real GDP.
B. the level of total planned expenditures is less than real GDP.
C. the level of total planned expenditures equals real GDP.
D. the level of total planned expenditures equals zero.
Answer: A
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If a firm employs an extra unit of labor, the additional product generated by employing the extra unit of labor is
A) the marginal physical product of labor. B) the diminished marginal product. C) the outside edge. D) total product.
In the United States, a "buy American" act was passed in 1933 to create larger markets for domestic goods
a. True b. False Indicate whether the statement is true or false
The value of GDP calculated by the expenditure method: a. includes inflation, while the value of GDP calculated by the income method excludes inflation. b. excludes inflation, while the value of GDP calculated by the income method includes inflation. c. is always equal to the value of GDP calculated by the income method
d. is always greater than the value of GDP calculated by the income method.
Under perfect competition, which of the following are the same (equal) at all levels of output?
a. Price and marginal cost b. Price and marginal revenue c. All of the answers are correct. d. Marginal cost and marginal revenue