According to the circular-flow diagram GDP
a. can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factors of production.
b. can be computed as the revenue firms receive from the sales of goods and services but not as the payments they make to factors of production.
c. can be computed as payments firms make to factors of production but not as revenues they receive from the sales of goods and services.
d. cannot be computed as either the revenue firms receive or the payments they make to factors of production.
a
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The benevolent social planner would like to see people take
A) all possible precautions. B) all cost-justified precautions. C) only cost-justified precautions. D) both b and c
In the classical model, fiscal policy is both ineffective and unnecessary
a. True b. False
The government's spending on agriculture is essentially a transfer payments program that takes money from the general population in the form of taxes and gives it to the farm population in the form of subsidies
Indicate whether the statement is true or false
If a monopolist is practicing perfect price discrimination, then the following equation is true:
A) MC = 1/2 MR at the profit-maximizing level of output. B) MR = 1/2 P for any unit. C) MR = P for all units. D) P = AVC at the profit-maximizing level of output. E) AR = ATC at the profit-maximizing level of output.