Explain the difference between gross domestic product and gross national product. Give an example of each
What will be an ideal response?
Gross domestic product is the value of final goods and services produced within the United States. In contrast, gross national product is the value of final goods and services produced by residents of the United States, regardless if the production takes place in the United States. GNP would include the production from a Ford Plant located in France. GDP would include production from a Honda plant located in Ohio.
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Airlines charge a ____________ to business travelers compared to leisure travelers because business travelers have a ____________ demand than leisure travelers
a. Higher; more elastic b. Higher; less elastic c. Lower; more elastic d. Lower; less elastic
According to the figure, if MiiTunes charges low prices, The Rock Shop should:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. enter the market and earn $4 million.
B. enter the market and lose $2 million.
C. not enter the market and earn $0.
D. It cannot be determined what The Rock Shop will do.
When PAE < Y the economic response should be:
A. eventually production will decrease. B. eventually production will increase. C. there will be no change in aggregate production. D. the government will intervene by cutting down on taxes.
Being the low price seller in the market is
A) the best place to be. B) not necessarily the best place to be. C) expected of large firms as they are subject to economies of scale. D) not as preferred as being the high price seller in the market.