The GNP and National Income (NI) figures are not equal because
a. business profits are included in GNP but not in NI.
b. capital consumption allowance and productive resource income from the rest of the world are included in GNP but not in NI.
c. all taxes must be deducted from GNP to arrive at NI.
d. None of these.
b. capital consumption allowance and productive resource income from the rest of the world are included in GNP but not in NI.
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Assume that there are only two good for a consumer to purchase. Explain why a consumer can not be maximizing utility if both goods are inferior.
What will be an ideal response?
Which of the following statements about pollution or pollution control is TRUE?
A) A nationwide uniform tax on emissions is the appropriate way to reduce pollution levels. B) A tax to reduce pollution levels should be based on the economic damages rather than on the absolute amount of pollution. C) Private costs of pollution usually exceed social costs. D) The optimum amount of pollution abatement is where the total benefits of pollution abatement equal the total costs of pollution abatement.
For a retailer buying from a wholesaler, volume discounts do not violate the Robinson-Patman act because
a. To sell larger volumes, the retailer himself has to offer discounts b. To sell larger volumes, the retailer has to incur costs in promoting the item c. To sell larger volumes, the retailer has to hold the items in inventory longer d. All of the above
By itself, if a U.S. firm builds a new factory overseas, U.S. net capital outflow rises
a. True b. False Indicate whether the statement is true or false