U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance
a. True
b. False
Indicate whether the statement is true or false
False
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The process of focusing on only the most important factors to explain a phenomenon is called
A. abstraction. B. marginal analysis. C. rational choice. D. controlled experimentation. E. the trade-off between efficiency and equality.
For a competitive firm, which of the following quantities is equal to marginal cost?
a. wage marginal product of labor b. wage value of marginal product of labor c. price marginal product of labor d. price value of marginal product of labor
The willingness and ability to buy specific quantities of a good at alternative prices in a given time period, ceteris paribus.
2. The pleasure or satisfaction obtained from a good or service. 3. The amount of satisfaction obtained from entire consumption of a product. 4. The change in total utility obtained by consuming one additional (marginal) unit of a good or service. 5. The marginal utility of a good declines as more of it is consumed in a given time period. 6. The assumption of nothing else changing. 7. The quantity of a good demanded in a given time period increases as its price falls, ceteris paribus. 8. A curve describing the quantities of a good a consumer is willing and able to buy at alternative prices in a given period, ceteris paribus. 9. Percentage change in quantity demanded divided by the percentage change in price. 10. The price of a product multiplied by the quantity sold in a given time period. 11. A change in the quantity demanded at any (every) given price. 12. Percentage change in quantity demanded divided by percentage change in income. 13. Good for which demand increases when income rises. 14. Good for which demand decreases when income rises. 15. Goods that substitute for each other; when the price of good X rises, the demand for good Y increases, ceteris paribus. 16. The most desired goods or services that are forgone in order to obtain something else. 17. Percentage change in quantity demanded of good Y divided by the percentage change in price of good X. 18. Goods frequently consumed in combination; when the price of good X rises, the demand for good Y falls, ceteris paribus. Demand Opportunity Cost Total Revenue Total Utility Ceteris Paribus Price Elasticity of Demand Marginal Utility Law of Diminishing Marginal Utility Substitute Goods Shift in Demand Inferior Good Demand Curve Utility Income Elasticity of Demand Normal Good Complementary Goods Law of Demand Cross-Price Elasticity of Demand
Governments sometimes subsidize domestic industries. When this occurs
A. the subsidized industries have an advantage on international markets relative to non-subsidized firms. For this reason, other countries often impose tariffs on the subsidized imports. B. the subsidized industries have an advantage on international markets relative to non-subsidized firms. However, this is not an argument for imposing tariffs and tariffs would violate international agreements. C. the governments will not impose tariffs. D. the subsidized sell less in international markets because it is more profitable to sell at home.