The computation of GDP by adding up all components of national income including wages, interest, rent and profits is
A. the expenditure approach.
B. transfer payments.
C. the income approach.
D. the value of all securities.
Answer: C
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How does the imposition of an excise tax on a good affect its market equilibrium?
A) Equilibrium quantity decreases, and equilibrium price decreases. B) Equilibrium quantity decreases, and equilibrium price increases. C) Equilibrium quantity increases, and equilibrium price decreases. D) Equilibrium quantity increases, and equilibrium price increases
According to the indifference principle, in the long run if being a teacher is more desirable than being a garbage collector,
a. teachers would be paid a relatively higher salary than garbage collectors b. teachers would be paid a relatively lower salary than garbage collectors c. teachers and garbage collectors would both be paid the same wages d. none of the above
A natural monopoly can purposely increase its cost of production by
A. Using government subsidies to offset losses. B. Keeping marginal costs low. C. Using its own unregulated subsidiary to inflate its cost. D. Substituting cheaper inputs.
A firm's ________ curve in a perfectly competitive product market is the same as its supply curve. Similarly, a firm's ________ curve in a perfectly competitive labor market is the same as its demand curve.
A. total revenue; total cost B. marginal cost; marginal revenue product C. total cost; total revenue D. marginal revenue product; marginal cost