Identify the two major types of non production transactions that are not included in GDP
What will be an ideal response?
(1) Purely financial transactions such as the purchase and sale of stocks and bonds are excluded, and also excluded are public and private transfer payments; and (2) secondhand sales.
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The manager of the sales department (a profit center) at Harvey's HVAC, decides to outsource any sales training that the division needs since in house training is expensive, even though the outsourced training does not cover the company's repair and warranty information from the service department. Does the Sales department have enough incentive to make a good decision?
a. Yes, because them making the right decision would increase the division profit b. No, because them making the right decision does not affect the division profit c. No, because them making the right decision decreases the division profit d. Yes, because them making the right decision increases the company's total profits
According to Simon Kuznets, _____
a. the main force behind economic growth is increases in the quantity of labor b. the main force behind economic growth is increases in the quantity of capital c. the main force behind economic growth is increases in the quality of inputs d. government regulations increase labor productivity e. government regulations decrease labor productivity
If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
A. entry barriers to prevent competing firms from entering this market. B. the demand curve for firms in the market to shift to the right. C. the average cost of production to decrease. D. the average cost of production to increase.
The lower the level of income in a country, the
A) less income elastic is the demand for food. B) more income elastic is the demand for food. C) more negative the income elasticity of the demand for food. D) Both answers A and C are correct. E) None of the above is correct.