By not counting the value of intermediate goods when calculating GDP, you avoid
A. year-to-date calculations.
B. deficit spending.
C. black-market accounting.
D. double counting.
Answer: D
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In order to maximize profits, firms organize their production using
A) only a command system. B) only an incentive system. C) a combination of command and incentive systems. D) neither a command nor an incentive system.
If Larry Robinson is taxed $100 on an income of $1,000 . Guy Carbonneau is taxed $220 on an income of $2,000 . and Chris Chelios is taxed $390 on an income of $3,000 . the tax system is
a. progressive b. poll c. regressive d. excise e. proportional
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
Which of the following statements best describes the economic short run?
A) It is a period of one year or less. B) It is a period during which firms are free to vary all of their inputs. C) It is a period during which at least one of the firm's inputs is fixed. D) It is a period during which fixed inputs become variable inputs because of depreciation.