Adding up all transactions in the economy ________ "double counting" and thus produces ________ measure of GDP
A) avoids, a proper
B) avoids, an improper
C) results in, a proper
D) results in, an improper
D
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The extent to which a given change in investment affects aggregate demand depends:
a. on the change in interest rate. b. on the size of the spending multiplier. c. on the change in money supply. d. on the change in investment.
This graph shows the cost and revenue curves faced by a monopoly. 
According to the graph shown, if Q2 units are being produced, this monopolist:
A. is earning negative economic profits. B. is earning zero economic profits. C. may be earning zero accounting profits. D. is earning positive economic profits.
Suppose you and a classmate decide to split up tasks for a group project. In two hours you can write 6 pages of a paper or create 24 presentation slides. Your classmate can write 4 pages of a paper or create 20 slides. Assume that your work is of equal quality. Do you have a comparative advantage in production?
What will be an ideal response?
The case for advertising includes the idea that
A. it creates wants that otherwise would not have existed. B. firms spend large sums of money to create meaningless differences among products. C. it can promote competition. D. it adds to society's scarce resources.