The Department of Commerce sums the payments made to resources to arrive at GDP in the form of compensation of employees, rents, profits, net interest, indirect taxes, and depreciation. This method of deriving GDP is called the:
A. opportunity cost approach.
B. income approach.
C. expenditure approach.
D. monetarist approach.
Answer: B
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A firm using a two-part tariff faces a tradeoff because
A) any increase in consumer surplus must be offset by a decrease in producer surplus. B) the only way to increase the fixed-fee portion of the price is to lower the per-unit portion of the price. C) the only way to increase total revenue is to lower per-unit profit. D) the smaller the variation between the parts of the price, the greater the deadweight loss generated by the pricing scheme.
A labor union acts as a monopsony seller of labor.
Answer the following statement true (T) or false (F)
Why do public schools typically require proof that children have been immunized before enrolling?
A. It is an efficient way to publicize the need for immunizations. B. People don't realize that becoming vaccinated entails no risk. C. It is a costly to fake signal that a child is healthy. D. People do not adequately account for the external cost of not vaccinating their children.
Which statement is true?
A. An effective price ceiling is above equilibrium price and causes surpluses. B. An effective price ceiling is above equilibrium price and causes shortages. C. An effective price ceiling is below equilibrium price and causes surpluses. D. An effective price ceiling is below equilibrium price and causes shortages.