Expenditures that are directly included in GDP accounts include
a. the value of housework done by householders
b. the selling of illegal drugs
c. playing tennis with friends on a Sunday afternoon
d. casual labor in sweatshops that is unreported
e. going to a Dodgers-Expos game on your day off
E
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The above figure shows the market for labor. The employer is a monopsony. The firm will not hire 800 hours of labor because at that point
A) VMP > MCL. B) VMP = MCL. C) VMP < MCL. D) VMP = W.
Firms with market power offer a differentiated product in order to
a. follow the trends b. increase market power c. support its contractors in low-wage countries d. fill up costly warehouses e. All of the answers are correct.
There is zero crowding out and the federal budget is balanced at the time government purchases are increased. It follows that the __________ curve shifts to the __________, and in the short run both the price level and Real GDP __________
A) AD; left; rise B) AD; right; fall C) AD; right; rise D) AD; left; fall E) SRAS; right; rise
Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry's opportunity cost of attending State College is:
A. $20,000 B. $35,000 C. $30,000 D. $15,000