Gross domestic product equals the sum of
a. all income earned by domestic producers of goods and services minus indirect business taxes and depreciation during the year.
b. the purchases of final goods and services produced domestically during a year.
c. the amount received by firms for consumer goods and services.
d. incomes received by households minus the sale of factor services supplied domestically.
B
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When consumers decide to increase household debt, this action will
A. increase the amount consumed along a stable consumption schedule. B. shift the consumption schedule upward. C. decrease the amount consumed along a stable consumption schedule. D. shift the consumption schedule downward.
Internal economies of scale means that
A) firms are experiencing lower average production costs due to a geographical concentration of firms in their industry that make it cheaper and easier to hire highly specialized workers and inputs. B) firms will have lower profits after international trade begins, because costs will be higher than when they just focused on the domestic market. C) consumers will have less choices once trade begins, because firms will be squeezed out of the market. D) simply expanding the size of the market the firm serves reduces overall per unit costs, since the firm can spread costs over more output.
Which type of profit takes into consideration both implicit and explicit costs?
a. economic profit b. accounting profit c. normal profit d. both A and C consider implicit and explicit costs
Delta, United, US Airways and JetBlue offer the 24-hour free cancellation; __________ doesn't but lets you hold a reservation for 24 hours without paying.
Fill in the blank(s) with the appropriate word(s).