If we add up all the money people spend buying final goods and services-being careful to omit spending on intermediate goods so as not to double-count-the sum will be:
A. the gross domestic product of the economy.
B. total expenditure in the economy.
C. the market value of all output sold in the economy.
D. All of these statements are true.
Answer: D
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Alex, Bill, and Cid live in Souland. Their annual incomes and the amounts they pay in income tax are shown in the table below. Income Tax Alex 30,000 6,000 Bill 20,000 4,000 Cid 40,000 8,000 The income tax in Souland is
A) proportional. B) disproportional. C) regressive. D) progressive.
What is the problem with the argument that infant industries need to be protected from foreign competition?
What will be an ideal response?
A horizontal merger
A) results in a trust (for example, the Standard Oil Company). B) is a merger between firms in the same industry. C) is a merger between firms at different stages of production of a good. D) was illegal in the United States until the Federal Trade Commission Act was passed by Congress in 1914.
A natural monopoly owes its existence to
A) control of a key input. B) persistently declining long-run average costs as scale increases. C) patents. D) increasing marginal returns and the ability to obtain quantity discounts from suppliers.