The existence of the underground economy causes gross domestic product (GDP) statistics to _____
a. understate the true volume of economic activity
b. overstate the aggregate price level in the economy
c. overstate the standard of living
d. overstate the profit of firms
e. understate government spending in an economy
a
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When Ferrari sells stock to the public in its IPO, it will do so through the New York Stock Exchange. This is an example of Ferrari using ________ to raise funds
A) corporate governance B) bonds C) direct finance D) indirect finance
A market supply curve is determined by
a. vertically summing individual supply curves. b. horizontally summing individual supply curves. c. finding the average quantity supplied by sellers at each possible price. d. finding the average price at which sellers are willing and able to sell a particular quantity of the good.
Which of the following are NOT Federal Reserve monetary policy goals?
A) moderate long-term interest rates B) price level stability C) maximum employment D) zero percent unemployment.
In the table below, the capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. 
If the firm produces 40 units of output, what is average fixed cost?
A. $600 B. $120 C. $7.50 D. $25 E. none of the above