Owners claim residual income
Indicate whether the statement is true or false
True
You might also like to view...
In game theory a listing of the rewards or punishments that each player will receive for each possible combination of strategies is called
a. the marginal strategy schedule b. the payoff matrix c. strategic planning d. the input-output matrix e. the game listing payoff
If national income accountants fail to make an adequate adjustment for increases in the quality of goods and services over time,
a. increases in real GDP will understate the growth rate of real output. b. increases in real GDP will overstate the growth rate of real output. c. the GDP deflator will overstate the rate of inflation. d. the GDP deflator will understate the rate of inflation. e. both a and c are correct.
When the Fed wants to expand the money supply through open-market operation, it
A. sells government securities to the Treasury. B. sells government securities to member banks. C. buys government securities from member banks. D. buys government securities from the Treasury.
Suppose the constant marginal cost of producing an automobile is $11,000 in Canada, $8,000 in the United States, and $12,000 in Japan. Each country's automobile industry is perfectly competitive.a. Under free trade, would Canada produce its own cars or import them? If it imports, which country will it import from?b. If the Canadian government imposes a 100 percent tariff on all auto imports, would it produce its own automobiles or import them? If it imports, which country will it import from?c. Canada has a tariff of 100 percent on imported autos. Then Canada decides to join a customs union with the United States (with a uniform external tariff of 100 percent). After the customs union is formed, what will the domestic price of automobiles be in Canada?d. If Canada decides to join this
customs union with the United States, will there be trade creation, trade diversion, or both? Explain. What will be an ideal response?