Which one of the following events will reduce GDP?
a. Mrs. Lee hires a housekeeper.
b. You buy the ingredients to bake a loaf of bread, but you burn the bread and throw it away.
c. You decide to work five more hours per week at your bookkeeper job, even though you need more time to study.
d. An automobile manufacturer lays off 200 workers as the result of a fire in the paint shop.
D
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When the market price rises, the consumers' consumer surplus ________. When the market price falls, the consumers' consumer surplus ________
A) decreases; increases B) decreases; decreases C) increases; increases D) increases; decreases E) does not change; increases
The principal way in which inflation imposes costs upon the members of a society is by
A) destroying the incentive to consume. B) increasing the cost of planning correctly. C) lowering wages relative to prices. D) making goods more scarce. E) raising the percentage of the population below the official poverty line.
A firm's long-run average cost curve is derived from a series of short-run average total cost curves
Indicate whether the statement is true or false
Suppose that you and two friends have an opportunity to purchase a pizza restaurant. Each of you would put up $75,000 . The revenue from the restaurant is expected to remain $200,000 per year for the next several years
The costs (not including the opportunity costs of your investment) of operating the restaurant are expected to remain steady at $185,000 for the next several years. The current market rate of interest is 7 percent per year. Should you go in on this deal? Explain.