Which of the following is NOT an example of an activity with external benefits?
A. Having your car's faulty exhaust system repaired
B. Eating a sandwich in the dining hall
C. Installing smoke alarms in your house
D. Planting flowers in your front yard
Answer: B
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GDP can be calculated by summing ________.
A. consumption, investment, government purchases, and net exports B. consumption, investment, government purchases, exports, and imports C. consumption, investment, wages, and rents D. consumption, investment, government purchases, and imports
According to the quantity theory of money, an increase in the quantity of money will increase the price level
a. and decrease real GDP and increase the velocity of circulation. b. and increase real GDP but decrease the velocity of circulation. c. but have no effect on real GDP or the velocity of circulation. d. and increase real GDP and the velocity of circulation. e. but have no effect on real GDP and will decrease the velocity of circulation.
Recall the Application about price discrimination using refillable soda bottles to answer the following question(s).According to the Application, how does the firm earn a larger profit through the refillable soda bottles?
A. The consumers who were not likely to buy the soda gets a lower price, making them more likely to purchase soda. B. The seller saves money from recycling the disposable bottles. C. The seller earns more revenue from sale of the expensive recyclable bottles. D. The consumers advertise to friends that the seller gives discount through refillable bottles, causing an increase in demand.
The long-run equilibrium of a monopolistically competitive firm is characterized by
A) a tangency of the average total cost curve with the firm's demand curve. B) price equal to marginal cost. C) production at the minimum point of the firm's average total cost curve. D) production at the minimum point of the firm's average variable cost curve.