If you make dinner for yourself,
A) the market value of your dinner is added to GDP.
B) your service in preparing the meal is valued at a cook's wage and added to GDP.
C) none of what you bought to prepare for dinner is included in GDP.
D) only the market value of ingredients that you purchased this year is added to GDP.
E) the difference between the cost of the ingredients that you purchased this year and the market value of the dinner is added to GDP.
D
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Refer to Figure 5-1. If, because of an externality, the economically efficient output is Q2 and not the current equilibrium output of Q1, what does S2 represent?
A) the market supply curve reflecting marginal social cost B) the market supply curve reflecting implicit cost C) the market supply curve reflecting marginal private cost D) the market supply curve reflecting external cost
An oligopolist producing where MR > MC should lower its price and increase output to maximize its profits.
Answer the following statement true (T) or false (F)
The evidence for the U.S. suggests that the natural rate of unemployment has
A) increased by more than 5% since the 1960s. B) increased by 1 to 2% since the 1960s. C) decreased from 2000-2007, lower than it had been in the 1980s. D) decreased by more than 5% since the 1960s. E) fluctuated over time since the 1960s.
The reason the marginal cost curve eventually increases as output increases for the typical firm is because of:
A. Diseconomies of scale B. Diminishing marginal utility C. Diminishing marginal returns D. Increasing opportunity cost