Explain what money income is and why it is less inclusive than "economic income"
What will be an ideal response?
Money income is the measure of income used by the Census Bureau. Because it excludes non-cash transfer payments and capital gains income, it is less inclusive than "economic income".
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According to Keynes, the money demand function
a. did not change as the return on other assets changed. b. changes with output. c. shifts with changes in the public confidence in the economy. d. both b and c. e. all of the above.
Suppose that the U.S. imposed an import quota on beef. Sales of U.S. beef producers would
a. rise and exports of other industries would increase. b. rise and exports of other industries would decrease. c. not change, exports of other industries would increase. d. not change, exports of other industries would decrease.
Based on the graphs showing price discrimination in movie ticket prices, if the theatre charges $11 per ticket at the evening show, it will ______.
a. maximize profits
b. sell too many tickets
c. sell too few tickets
d. sell no tickets
You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w = $40, r = $100, MPL = 20, and MPK = 40 the firm:
A. is profit maximizing but not cost minimizing. B. is cost minimizing. C. should use less L and more K to cost minimize. D. should use more L and less K to cost minimize.