The owner of an oil well in Texas sells 1000 barrels of oil to a refinery in Mexico for $12,000 for refining. This transaction
A.) has no effect on GDP because this is the sale of an intermediate product
B.) has no effect GDP because the refinery is in Mexico
C.) will increase GDP by $12,000
D.) decreases GDP because oil reserves have fallen by 1000 barrels
Ans: A.) has no effect on GDP because this is the sale of an intermediate product
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The figure above shows the market for tires. The figure shows that the government has imposed a tax of ________ per tire and that ________ pay most of the tax
A) $30; buyers B) $40; buyers C) $30; sellers D) $60; sellers E) $60; buyers
Which of the following statements is NOT a reason that the cost of a college education is greater for the low-productivity group than for the high-productivity group?
A) The wages they give up by going to college instead of working will tend to be higher for them. B) They may have to pay for tutoring services or other extra help to accomplish the same educational goal. C) They may have to take remedial classes, which would increase the length of time it takes to accomplish the same goal. D) Even if they take no remedial classes, they may have to spend more time studying for each class, and the value of their leisure time needs to be considered in the calculation. E) Based on previous signaling, such as from their high school grades or SATs, they may receive less merit-based financial assistance, and thus be under a greater financial strain during their college years.
An increase in price:
A. cannot cause a quantity effect. B. cannot cause a price effect. C. causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price. D. causes an increase in quantity demanded.
If price were lowered from $22 to $21, quantity demanded rose from 100 to 103, calculate elasticity; state whether demand is elastic, unit elastic, or inelastic, and find how much total revenue was when the price was $22 and $21.
What will be an ideal response?