To compute GDP, you must add up the value of all the goods and services produced in a country in a year.
Answer the following statement true (T) or false (F)
False
Adding up the value of all goods and services produced would double count intermediate goods. Only the value of final goods and services should be summed when computing GDP.
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Day care is provided by a competitive constant-cost industry at a price of $40 per child per day. The government wants to increase the availability of day care and thus chooses to build and operate 50 new day care centers across the nation.
(i) In the short run, what happens to the price of day care? Does the total amount of day care provided increase in the short run? What happens to the profits of day care centers? (ii) In the long run, what happens to the size of the day care industry? What happens to the price of day care and the profits of day care centers? Does the total amount of day care provided increase in the long run?
You have an hour between your economics and math classes. What is the opportunity cost of that time if you use it to complete your math homework instead of your economics homework?
A) the economics homework you could have completed B) the cost of your calculator and math textbook C) the math homework you chose to complete D) zero, because it doesn't cost any money to do your math homework
Efficient production means producing
a. less output when costs are high and more output when costs are low b. at the lowest possible cost regardless of the quantity of output c. at any point on the production possibilities curve d. no more than what society needs e. in excess of what society needs
The long-run aggregate supply curve is vertical because
A. the economy has reached its potential real Gross Domestic Product (GDP) and is at full employment. B. the economy has large numbers of unemployed. C. the economy has yet to use all its available resources. D. the economy has contracted.