We can measure total production by:
A. adding up everyone's asset wealth.
B. comparing cost of inputs to final sale price.
C. adding up what people spend on final goods and services.
D. adding up all spending in the economy on all goods and services.
Answer: C
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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. Given market demand, what is the market price per cubic yard?
A. $80 B. $85 C. $90 D. $95
As a manager holding an auction with correlated or common values, you want buyers to place bids that are ________ their estimated ________ and sellers to place bids that are close to their estimated ________.
A) close to; valuations; costs B) far from; valuations; costs C) close to; costs; valuations D) far from; costs; valuations
According to the natural rate hypothesis, the unemployment rate should equal 0 percent in the long run
a. True b. False Indicate whether the statement is true or false
If the economy is in recession and the number of used baby clothing stores increases, then used baby clothes
a. are a necessity b. are an inferior good c. are a normal good d. are a luxury e. have price-elastic demand