U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1, what changes in the market would result in an economically efficient output?
A) The price would increase, the quantity supplied would increase, and the quantity demanded would decrease. B) The price would increase, quantity demanded would increase, and quantity supplied would decrease. C) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would increase. D) The price would increase, the demand would increase, and the supply would decrease.
Which of the following is not a reason for low savings in poor households:
a. low income b. unstable income c. irrational spending patterns d. unfamiliarity with in financial institutions e. all are good reasons for low savings
An investor will generally find that hiring an investment firm to actively manage his or her portfolio will
A) result in a higher return than would be received from an index mutual fund. B) be less expensive than simply placing money in an index mutual fund. C) result in a higher return, but will be more expensive than placing money in an index mutual fund. D) result in about the same return, but be more expensive than placing money in an index mutual fund.
Use the above figure. The economic profit for this firm is
A) zero. B) the distance between T and E. C) the distance between E and x-axis. D) the distance between T and x-axis.