One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is
A. people substitute between goods.
B. quality has remained steady.
C. the underground economy (unreported and illegal income and sales) is not counted.
D. things produced by people under 18 are not counted.
Answer: C
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Which of the following is not a characteristic of a market with a price floor?
A. Quantity demanded exceeds quantity supplied B. Sellers offering discounts in disguised forms C. Problem of disposal created by excess supply D. Survival of less efficient businesses
Suppose wages in the market for plumbers increase. Some plumbers start taking on extra plumbing jobs while others cut back on the number of hours they work. What could explain this?
What will be an ideal response?
Endogenous growth theory supports the conclusion that ________
A) government spending cannot influence the level of research and development B) increased government spending on research and development is counterproductive C) per capita income growth is a function of real factors, such as the supply of money D) increased government spending on research and development is useful
For a monopolist, when the output effect is greater than the price effect, marginal revenue is
a. positive. b. negative. c. zero. d. maximized.