According to the circular-flow diagram, GDP
a. can be computed as payments firms make to factors of production plus revenues they receive from the sales of goods and services.
b. can be computed as the revenue firms receive from the sales of goods and services minus the payments they make to factors of production.
c. can be computed as either the revenue firms receive from the sales of goods and services or the payments firms make to factors of production.
d. can be computed as the payments firms make to factors of production, but not as revenues they receive from the sales of goods and services.
Ans: c. can be computed as either the revenue firms receive from the sales of goods and services or the payments firms make to factors of production.
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A characteristic of a public good is that a public good is provided
A) to some businesses, but not to others. B) only in some states. C) to low income residents in some states. D) to many individuals at no additional cost.
If Starbucks and Dunkin Donuts are faced with the game in the figure shown, we can see that:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. Starbucks has a dominant strategy, but Dunkin Donuts does not.
B. Dunkin Donuts has a dominant strategy, but Starbucks does not.
C. neither company has a dominant strategy.
D. both companies have a dominant strategy.
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Point T is:
A. attainable. B. neither attainable nor efficient. C. both attainable and efficient. D. efficient.
Price leadership is not ______ collusion but ______ collusion.
a. tacit; outright b. predatory; vertical c. outright; tacit d. competitive; tying