Answer the following statements true (T) or false (F)
1) Disposable income measures the before-tax income received by resource suppliers.
2) NDP can be determined by adding taxes on production and imports to GDP.
3) If nominal GDP is 150 and the GDP price index is 200, real GDP is 75.
4) If real GDP is 50 and nominal GDP is 100, the GDP price index is 200.
5) Real GDP accounts for changes in product quality; nominal GDP does not.
1) F
2) F
3) T
4) T
5) F
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P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
Given the information in this decision tree, if QRS-TV announces that it will air a reality show, it can expect to:
A. lose $5 million. B. earn $20 million. C. earn $5 million. D. earn $10 million.
The elasticity of demand for employees is -0.50. It is also estimated that the existing minimum wage (price floor) has increased the raise the wage by 25% above equilibrium wage
How much would the employment change if the price floor was eliminated? A) Employment would decrease by 12.5%. B) Employment would increase by 12.5%. C) Employment would decrease by 25%. D) Employment would increase by 25%.
One danger associated with calls for fairness based on reciprocity is that, calls for fair trade may be invoked in cases where, foreign restrictions on U.S. imports do not actually exist
a. True b. False Indicate whether the statement is true or false
If there is a permanent increase in demand for the product of a perfectly competitive industry, the process of transition to a new long-run equilibrium will include:
a. the entry of new firms. b. Neither the entry of new firms nor temporarily higher profits is correct. c. temporarily higher profits. d. Both the entry of new firms and temporarily higher profits are correct.