Suppose that there is no government and no international trade. When C + I is less than the level of real GDP
A) unplanned inventories increase, and real GDP contracts.
B) unplanned inventories decrease, and real GDP expands.
C) real planned investment spending equals real planned saving.
D) unplanned inventories equal zero, and there is no change in the level of real GDP.
A
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Standard graphical analysis shows that monopoly creates a deadweight loss.
(i) How and why must this welfare analysis be modified when the firm is a natural monopoly? (ii) How and why must this welfare analysis be modified when the firm's market power is acquired from a legal barrier to entry?
The process of calculating revenue and expenses through receipts and other facts to determine what the numbers are for a company or entity is known as
a. finance b. budgeting c. economics d. accounting e. none of these
Say a worker sees work and leisure as perfect complements with a ratio of 5 to 1 (requiring 1 hour of leisure for every $5 in income). If this worker earned a wage of $10 her optimal demand for leisure would be:
A. 24. B. 10. C. 16. D. 20.
Which of the following is not included in 2016's GDP?
A. the value of a motorcycle produced in the United States and exported to Japan B. the commission earned by a headhunter when she locates a job for a client C. the profit earned in 2016 from selling a stock that you purchased in 2008 D. the value of a motor that is used in the production of a lawn mower