If waitresses and taxi drivers do not report all of their income to the government, GDP will be understated. This is because the unreported income
a. involves the introduction of new goods.
b. is part of the underground economy.
c. is an example of nonmarket production.
d. represents an increase in leisure time.
B
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Which one of the following statements is true?
a. The demand for water tends to be price inelastic for both residential and irrigation uses b. The demand for water tends to be price elastic for both residential and irrigation uses c. The demand for water tends to be price elastic for residential uses but price inelastic for irrigation uses d. The demand for water tends to be price inelastic for residential uses but price elastic for irrigation uses e. The demand for water is more inelastic in the long run
The propensity ?0 + ?1+ … + ?k is sometimes called the:?
A. ?short-run elasticity, which measures the percentage increase in a dependent variable after k quarters given a permanent 1% increase in the k independent variables. B. ?long-run elasticity, which measures the percentage increase in a dependent variable after k quarters given a permanent 1% increase in the k independent variables. C. ?short-run elasticity, which measures the percentage decrease in a dependent variable after k quarters given a permanent 1% decrease in the k independent variables. D. ??long-run elasticity, which measures the percentage decrease in a dependent variable after k quarters given a permanent 1% decrease in the k independent variables.
The current U.S. Secretary of Agriculture is ________
Fill in the blank(s) with correct word
Pie-Oh-My, a monopolistically competitive firm, is producing 80 gourmet pies per day and selling each pie for $32. At that production level ATC is $40, AVC is $30, AFC is $10, and both MR and MC are $16. In the short run, this firm should
A. increase output to the point where price equals marginal cost. B. shutdown and produce zero pies and pay fixed costs. C. decrease output to the point where price equals average total cost. D. continue to produce 80 pies, as price is greater than AVC.