If an automobile manufacturer pays $200 for a car windshield, $400 for four car tires, $100 for a car CD player, and sells cars made with these parts for $20,000, then each car the automobile manufacturer sells contributes how much to GDP?
A. $19,300
B. $20,000
C. $20,700
D. $20,200
Answer: B
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The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1945 and two of the competing banks have considered merging. Because the merger would raise the HHI by 155 points, the Federal Trade Commission would likely
A) challenge the merger. B) not challenge the merger. C) allow the merger as long as the HHI did not increase by more than 155 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 1875.
From a supply perspective, what impact would an increase in the price of motorcycles have on the market for motorcycles?
What will be an ideal response?
A principal disadvantage of conventional checking accounts compared to money market mutual funds is that checking accounts
A. are less liquid. B. often do not pay interest. C. cannot be used as a store of value. D. are not insured by deposit insurance.
Why is the demand for labor downward sloping in the short run?
What will be an ideal response?