The expansion of information technology and the increasing complexity of the economy should make the wage premium
a. continue rising.
b. continue falling.
c. rise.
d. fall.
a
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Describe the three different approaches to measuring the amount of economic activity that occurs during a period of time and explain why they all give identical measurements
What will be an ideal response?
A natural monopoly
a. typically arises because of a patent or copyright b. is a firm that, due to economies of scale, can serve a market at lower average cost than two or more firm could c. is a Pareto improvement as compared to a perfectly competitive market d. enjoys diseconomies of scale, so average total cost falls as more output is produced e. enjoys economies of scale, so average total cost rises as more output is produced
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
Tom?s Donuts can invest in a new espresso machine that costs $500 and will yield expected profits of $350 each year for two years. What is the present discounted value of the expected profits from this investment if the interest rate is 4%?
A. $323.59 B. $480.77 C. $660.13 D. $673.08