What problems would result from the measurement of the sales of all goods and services produced?
Measuring the sales of all goods and services would double count many items. For example, a glass pane that is sold to Toyota for a windshield would be counted when it was sold from the glassmaker and again when the automobile (final product) was sold to the consumer.
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If the world price for good A is below the domestic price for good A without trade, then consumer surplus will ________ and producer surplus will ________ with trade.
A. decrease; decrease B. increase; decrease C. increase; increase D. decrease; increase
China is the largest spender on research and development in the world (in total dollars or dollar equivalents).
Answer the following statement true (T) or false (F)
Which statement best describes the behavior of the monopsonist in the labor market?
A. It hires less labor and pays a lower wage rate than in the perfectly competitive case. B. It must pay different amounts to each unit of labor hired. C. It hires less labor but pays the perfectly competitive wage rate. D. It restricts its output to keep the product price high.
"Wants" as an economic concept includes
A) both material and nonmaterial desires. B) only the purchase of necessary basic goods. C) only the desire for luxury goods. D) only those goods that can be purchased with one's paycheck.