According to the circular-flow diagram, GDP
a. can be computed as payments firms make to factors of production plus revenues they receive from the sales of goods and services.
b. can be computed as the revenue firms receive from the sales of goods and services minus the payments they make to factors of production.
c. can be computed as either the revenue firms receive from the sales of goods and services or the payments firms make to factors of production.
d. can be computed as the payments firms make to factors of production, but not as revenues they receive from the sales of goods and services.
c
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The income paid for the use of land is called
A) rent. B) wages. C) interest. D) land capital. E) profit.
Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point d,
A) his MRS is larger than the trade-off offered by the market. B) he is willing to give up more chicken than he has to, given market prices. C) he is not maximizing his utility. D) All of the above.
A monopolistically competitive market is characterized by:
a. one firm selling a unique product. b. many firms selling identical products. c. many firms selling similar but differentiated products. d. few firms selling identical products. e. few firms selling similar but differentiated products.
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
As shown in the graph, when a government imposes a quota, the outcome differs from that of a tariff being imposed in that area:
A. G represents quota rents instead of tax revenues. B. F and H are deadweight loss instead of transferred surplus. C. FGH is deadweight loss instead of tax revenues. D. E represents tax revenues instead of transferred surplus.