d. a new house

a. counting final goods
b. double counting
c. counting final services
d. value counting


b. double counting

Economics

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The more inelastic the supply curve in a goods market, the smaller will be the deadweight loss from a per-unit tax in that market.

Answer the following statement true (T) or false (F)

Economics

Income on the horizontal axis at which the vertical distance to the 45-degree line is greater than the vertical distance to the Ep line gives rise to ________-than-equal planned expenditures, and so we must be ________ the equilibrium level of income

. A) less, below B) less, above C) greater, below D) greater, above

Economics

If a consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S, we know that

A) the consumer's income is 250. B) the price of shelter is 5. C) the price of shelter is 5 times the price of food. D) All of the above.

Economics

Suppose there are 11 buyers and 11 sellers, each willing to buy or sell one unit of a good, with values {$14, $13, $12, $11, $10, $9, $8, $7, $6, $5, $4,}. Assume no transaction costs and a competitive market. Now suppose competition among several market makers forces the spread down to $4 . How many goods are traded?

a. Four b. Five c. Six d. Seven

Economics