Which of the following is not a part of U.S. GDP?
A. The value of a BMW imported from Germany
B. The commissions earned by a BMW dealership in the United States
C. The value of a BMW produced in the United States
D. The payments for an insurance policy on an old BMW sold by a U.S. company
Answer: A
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Which of the following is most likely to create diseconomies of scale?
A) concentration of production in a small number of very large plants. B) the use of automation devices. C) technological advance. D) division of labor.
A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses them all to produce cider, and $75,000 worth of apples to a grocery store that will sell them to households. How much of the farmer's sales will be included as apples in GDP?
a. $25,000 b. $150,000 c. $100,000 d. $125,000
Consider a labor market in which employers discriminate against African Americans. Comparing the labor market equilibrium with no discrimination to the equilibrium with discrimination,
A. The African American wage rate is higher without discrimination than with discrimination. B. The number of African American workers hired is lower without discrimination than with discrimination. C. The white wage rate is higher without discrimination than with discrimination. D. The African American wage rate and the white wage rate are equal with and without discrimination; only the number of workers differs.
In the employment of any resource, a firm should
A) equate marginal revenue product with the cost of the additional resource. B) hire each input unit that adds more to revenue than it adds to costs. C) hire each input unit provided its marginal physical product is greater than zero. D) A and B are both correct.