Which of the following statements is true?
A) Indirect business taxes are a component of national income because when added to the other components of national income, the sum must equal GDP.
B) Indirect business taxes must be subtracted from national income to yield a figure equal to GDP.
C) Indirect business taxes are a part of national income because they are considered a payment to a factor of production.
D) Indirect business taxes are not part of national income because they are not considered a payment to a factor of production.
D
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Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 2015 and $22 in 2016. If 2015 is the base year, Peg's contribution to real GDP in 2015 was ________ and in 2016 was ________.
A. $80,000; $88,000 B. $80,000; $90,000 C. $88,000; $90,000 D. $80,000; $99,000
Which of the following statements concerning a monopolist is FALSE?
A) A monopolist will produce at which MR = MC. B) For a monopolist, marginal revenue is less than price. C) A monopolist will charge the highest price at which any individual will purchase the product. D) A monopolist will shut down if price is less than average variable cost.
Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1 . If market demand is given by QD = 1050 ? 50P, how much will be produced in the market?
a. 300 b. 400 c. 500 d. 600
Which of the following would reduce the price of basketballs and increase the quantity sold?
a. An increase in the demand for basketballs. b. A decrease in the demand for basketballs. c. A decrease in the supply of basketballs. d. An increase in the supply of basketballs.