Suppose a tenant sues his landlord in court. Does this count as a market transaction?
A. No, because there is a third party (the judge) enforcing rules.
B. Yes, because the landlord and tenant are in the same place negotiating.
C. No, because there are no voluntary exchanges taking place.
D. Yes, because there is a buyer (tenant) and a seller (landlord).
Answer: C
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If imports are $100 million less than exports, government expenditures are $500 million, consumer expenditures are $1 billion, and gross investment spending is $500 million, then GDP is
A) $1 billion. B) $1.9 billion. C) $2 billion. D) $2.1 billion.
When the supply of labor to a firm is perfectly elastic the marginal factor cost will equal the
A) market price of the product. B) wage rate. C) marginal physical product. D) wage rate times the number of workers.
In the short run, the aggregate supply curve reacts to:
A. price changes. B. wage warfare. C. cartels. D. price ceilings.
There are many types of taxes
What will be an ideal response?