Which of the following would count as an investment expenditure in the GDP expenditures approach?
a. General Motors hires 10 electrical engineers.
b. Boeing purchases a new metal stretching machine used to produce airplane wings.
c. Ms. Quantum buys 100 shares of Microsoft stock.
d. A large corporation spends $10,000 per month on long-distance phone charges.
b
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The following will not cause correlation between X and u in the simple regression model:
A) simultaneous causality. B) omitted variables. C) irrelevance of the regressor. D) errors in variables.
A technological advance may come in either the form of a product or a process innovation
a. True b. False Indicate whether the statement is true or false
Firm A is a monopoly. The demand for its output is p = 90 - Q. Production is such that Q = L. Firm A hires labor in a competitive market where the wage is $10. Firm A will hire
A) 10 units of labor. B) 20 units of labor. C) 30 units of labor. D) 40 units of labor.
If a single-price monopoly is making a large economic profit, what keeps other firms from competing away the profit?
A) There are barriers to entry. B) The monopoly must be keeping the amount earned secret. C) The market must be too small. D) The existing firm's ATC must be too large to allow competitors to enter and earn an economic profit. E) Nothing, other firms will enter and will compete away the profit.