Which of the following purchases is included in the calculation of gross domestic product?
a) a used economics textbook from the bookstore
b) new harvesting equipment for the farm
c) 1,000 shares of stock in a computer firm
d) a car produced in a foreign country
e) government bonds issued by a foreign firm
Ans: b) new harvesting equipment for the farm
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If a seller's marginal cost is $25, and the price at which the good is sold is $15, the producer surplus is ________
A) -$10 B) $10 C) $15 D) $25
Internalizing a negative externality means _____
a. changing the incentives of consumers to ignore the externality b. changing the incentives of producers to act as if there were no market for the external cost c. changing the incentives of producers to act as if there were a market for the external cost d. changing the incentives of consumers to complain about the externality to the producers
Taxation can promote good social policy while minimizing economic inefficiency
a. True b. False Indicate whether the statement is true or false
The balance of payments is made up of three accounts: the merchandise trade account, the service account, and the investment income account.
Answer the following statement true (T) or false (F)