Using the information in the table, what is the value of gross investment?ConsumptionGross InvestmentGovt. PurchasesNet ExportsNominal GDP$9 trillion $3 trillion-$1 trillion$14 trillion
A. $4 trillion
B. $1 trillion
C. $3 trillion
D. $2 trillion
Answer: C
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When the firm is able to perfectly price discriminate, each unit is sold at its: a. peak load price
b. reservation price. c. cost price. d. market price.
A monopolistic competitive firm’s quantity produced is which of the following?
a. Greater than a monopolist but less than a perfect competition firm b. Less than a monopolists but greater than a perfect competition firm c. Greater than a monopolists and greater than a perfect competition firm d. Less than a monopolists and less than a perfect competition firm
An expectation that encourages people to behave in a certain way
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism
Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800. In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100. From this, we can conclude that:
A. butterflies are a negative externality for Billy and Sammy. B. Denise will set up the butterfly garden without any help from her free-rider neighbors. C. if Sammy refuses to contribute to the butterfly garden, he will be unable to enjoy its benefits if it is built. D. if Billy and Sammy contribute the amounts at which they value the butterfly garden, Denise will set it up.