In order to compute national income from GDP,
a. national income is first calculated, and then depreciation of capital and indirect business taxes are subtracted from it to get GDP.
b. GDP is first calculated, and then gross private domestic investment is subtracted from it to get national income.
c. GDP is first calculated, and then capital depreciation and proprietors' income are subtracted from it to get national income.
d. GDP is first calculated, and then depreciation of capital is subtracted from it to get national income.
d
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Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.75 per unit, what is the profit-maximizing total quantity for Sweet Grams to produce?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 68,000
B) 65,000
C) 75,000
D) 58,500
Which of the following is false?
a. We can be sure that people with more income get less marginal utility from their consumption of a good than those with less income. b. We can be sure that people with less income get less marginal utility from their consumption of a good than those with more income. c. We can be sure that those who receive greater marginal utility from consumption of a particular unit of an item receive greater total utility from consumption of that item. d. All of the above are false.
Sometimes price cuts can have an unintended result of consumers waiting for deeper discounts. What does this waiting suggest about supply and demand?
A. If buyers are buying less when price falls, the supply curve must have moved left. B. Price cuts have changed buyers' expectations, and the change in expectations has moved the demand curve left. C. The demand curve slopes the wrong way because price cuts have lead to smaller sales. D. If buyers are buying less when price falls, the supply curve must have moved right.
The economy of Appleland is experiencing a recession. In the figure given below, AD represents aggregate demand and AS represents aggregate supply in Appleland.
If Appleland decides to adopt austerity policies, it will
A. increase spending and cut taxes. B. increase spending and taxes. C. decrease spending and taxes. D. decrease spending and increase taxes.