The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320); imports ($35); exports ($22); personal consumption expenditures ($2,460); and, government purchases ($470). What is GDP in this economy?
a. $3,263 billion
b. $3,290 billion
c. $3,250 billion
d. $3,237 billion
d. $3,237 billion
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Assume a perfectly competitive firm is producing a level of output at which MR < MC. What should the firm do to maximize its profits?
A) The firm should do nothing — it wants to maximize the difference between MR and MC in order to maximize its profits. B) The firm should decrease output. C) The firm should increase price. D) The firm should increase output.
Many auction markets
a. are perfectly competitive because they involve an identical or nearly identical commodity, many buyers, and because the seller has no influence over the price b. are monopolistic because there is only one seller c. exist only on the Internet, because of the difficulty of assembling all buyers in a single location d. are controlled and run by governments e. involve numerous firms, none of which is large enough to influence the market price
The marginal utilities associated with the first 4 units of consumption of good Y are 10, 12, 9, and 7, respectively. What is the total utility associated with the third unit?
a. 3. b. 9. c. 25. d. 31. e. The amount cannot be determined from the marginal utilities.
Which of the following might be a goal of a union?
a. increasing the size of the union b. increasing the income while holding the size of the union constant c. increasing both the size and income of the union d. all of the above