The output of cell phones can be added to the output of refrigerators in order to compute GDP by:
A.) Multiplying the output of each by the corresponding prices and adding these dollar values.
B.) Dividing the output of each by price and adding these dollar values.
C.) Adding up the physical number of cell phones and refrigerators produced.
D.) Dividing dollar values of output for each by price and adding the results.
A.) Multiplying the output of each by the corresponding prices and adding these dollar values.
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The actual multiplier for the U.S. economy is estimated to be
a. about 10. b. approximately 5. c. between 3 and 4. d. less than 2.
The deadweight loss caused by a monopoly is the area:
a. between the demand curve and the marginal cost curve and between the profit-maximizing quantity and the efficiency quantity. b. between the demand curve and the marginal revenue curve and between the profit-maximizing quantity and the efficiency quantity. c. under the marginal revenue curve and between the profit-maximizing quantity and the efficiency quantity. d. under the marginal cost curve and the marginal revenue curve and between the profit-maximizing quantity and the efficiency quantity.
In the short run, there are large and persistent deviations between actual exchange rates and exchange rate predicted using purchasing power parity because of:
a. Discretionary monetary policy. b. Discretionary fiscal policy. c. Different market baskets in the two nations. d. Widely different inflation rates in the two nations. e. All of the above.
What is the key incentive that motivates a manufacturer to sell its products?
a. making profits on sales b. pleasing the consumer c. putting others out of business d. popularity of the product