If an American firm opens a production facility in India, the total value of the production will be included in the
A) gross domestic product of the United States.
B) national income of the United States.
C) gross domestic product of India.
D) consumption of fixed capital for India.
Answer: C
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In Figure 4.2, at quantities larger than Q1, demand is:
A. inferior. B. elastic. C. inelastic. D. unit elastic.
The In the News article "A Sirius Mistake? FCC Approves XM-Sirius Merger" discusses the merger of two satellite radio companies. In some industries, mergers can be economically justified if economies of scale
A. Act as a barrier to entry. B. Increase the total cost of production. C. Lower the average cost of production. D. Result in more product variety.
If the demand for school ball caps is inelastic, an increase in price will result in:
A. a decrease in profits. B. an increase in total revenue. C. a decrease in total revenue. D. an increase in the quantity demanded.
The above figure shows the U.S. market for wheat. With international trade, the gain in total surplus is equal to ________
A) area A B) area B + area C C) area D D) area C + area F E) area C + area D + area F