The largest component of GDP is:
A. government spending.
B. consumption expenditures.
C. private investment expenditures.
D. net exports.
Answer: B
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When a 13-year-old girl consents to babysit John's children for $5 per hour, economists assume
A) the girl was made worse off while John was made better off. B) the girl was made better off while John was made worse off. C) both parties were made worse off. D) both parties were made better off.
What is meant by aggregation? Why is aggregation important for macroeconomic analysis?
What will be an ideal response?
Of the following, which is not an economic rationale for public utility regulation?
a. production process exhibiting increasing returns to scale b. constant cost industry c. avoidance of duplication of facilities d. protection of consumers from price discrimination e. none of the above
Which of the following is true of marginal revenue product (MRP) and marginal product (MP)?
a. MRP = MP ? price, whether the firm is a price searcher or not. b. MRP = MP ? price only if the firm is a price searcher. c. MRP = MP ? price only if the firm sells in a perfectly competitive market. d. MRP = MP ? marginal cost only if the firm is a price searcher. e. MRP = MP/price only if the firm is a price taker.