The fundamental identity of national income accounting is
A) total production = total income - total expenditure.
B) total production = total income + total expenditure.
C) total production = total income = total expenditure.
D) total production = total income/total expenditure.
C
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Which of the following was the result on appeal in Webster v. Blue Ship Tea Room, Inc., the case in the textbook in which the plaintiff sued after getting a bone caught in her throat while eating New England seafood chowder?
a. The plaintiff could recover based on an express warranty. b. The plaintiff could not recover, because she waited too long to sue and because she was not the immediate purchaser of the fish. b. The plaintiff could recover based upon the implied warranty of merchantability. c. The plaintiff could not recover, because she should have anticipated that fish bones might remain in New England seafood chowder. d. The plaintiff could recover based upon the implied warranty of fitness for a particular purpose.
When externalities are present in market activity and production occurs at P = MC,
a. the market generates an optimal distribution of resources b. the market does not generate an optimal distribution of resources c. a free-rider condition always raises price d. P = ATC as well e. the firm suffers economic losses
Which of the following statements is true?
a. Derived demand for labor depends on the demand for the product labor produces. b. Unions can either increase demand or decrease the supply of labor. c. Investment in human capital is expected to increase the demand for those workers. d. All of the answers are correct.
When the price of apples goes up:
A. the demand for apples will decrease, ceteris paribus. B. the demand for apples will increase, ceteris paribus. C. the quantity of apples demanded will decrease, ceteris paribus. D. the quantity of apples demanded will increase, ceteris paribus.