Using the income approach, the smallest component in the calculation of GDP is:
a. net interest.
b. rental income.
c. profits.
d. compensation of employees.
b
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Which of the following ideas describes the concept of "utilitarianism"? I. Utilitarianism gained popularity in the 1930s. II. Utilitarians believed that a society should use only competitive markets to allocate resources. III
Utilitarians claimed that taking money from rich people and giving it to poorer people would make the economy more fair. A) III only B) II only C) I and II D) I, II and III
Suppose a tax on buyers has been imposed in the graph shown. Once the tax is in place, the sellers experience:
A. a decrease in supply.
B. an increase in supply.
C. a decrease in quantity supplied.
D. an increase in quantity supplied.
If income rises and the demand for a product remains unchanged, the income elasticity of demand for that product is unit elastic
a. True b. False
When individuals and businesses are permitted to trade freely over a larger market area,
a. wages will decline to the level of the poorest country in the region. b. the monopoly power of business firms will increase. c. they will be able to produce a larger output and consume a more diverse bundle of goods. d. businesses will be able to earn higher profits, but the income levels of individuals will decline.