In early 2010 Molly paid $200,000 for a house built in 2000 . She spent $30,000 on new materials to remodel the house. Although Molly lived in the house after she remodeled it, its rental value rose. Which of the following contributed to real GDP in 2010?
a. the price of the house, the cost of remodeling materials, the increase in rental value
b. the price of the house and the cost of remodeling materials, but not the increase in rental value
c. the costs of the remodeling materials and the increase in rent, but not the price of the house
d. None of the above are correct.
c
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For any monopolist with a positive marginal cost of production, its demand curve at its profit maximizing level: a. would be elastic
b. would be unit elastic. c. would be inelastic. d. could be either elastic or inelastic.
Piece rates typically
A. are associated with the worker incurring less risk concerning one's income. B. are more common among lower paying jobs. C. do not reward skill. D. are more common than time rates. E. encourage greater effort from workers.
The optimal strategy for a risk-neutral bidder in a second-price, sealed-bid auction with independent private values is to bid:
A. slightly higher than his or her valuation. B. slightly less than his or her valuation. C. his or her true valuation. D. None of the statements is correct.
The invisible hand refers to the:
A. fact that the U.S. tax system redistributes income from rich to poor. B. notion that, under competition, decisions motivated by self-interest promote the social interest. C. tendency of monopolistic sellers to raise prices above competitive levels. D. fact that government controls the functioning of the market system.