Which of the following statements is true?
A. GDP is greater than national income, which is greater than NDP.
B. Government spending is the largest sector of GDP.
C. A Social Security check sent to a retiree is counted as part of GDP.
D. The purchase of a new factory is counted in the investment sector of GDP.
Answer: D. The purchase of a new factory is counted in the investment sector of GDP.
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Because of ongoing changes in farm technology over the last two centuries, the average farm size in the U.S
a. increased, and the number of farms decreased b. increased, and the number of farms increased c. stayed virtually the same, but the number of farms decreased d. decreased, and the number of farms increased e. decreased, and the number of farms decreased
A firm's most efficient output is
A. always its most profitable output. B. at the minimum point of its ATC curve. C. at the minimum point of its AVC curve. D. impossible to find.
The management of Local Cinema has estimated the monthly demand for tickets to be ln Q = 22,328 ? 0.41 ln P + 0.5 ln M ? 0.33 ln A + 100 ln PDVD, where Q = quantity of tickets demanded, P = price per ticket, M = income, A = advertising outlay, and PDVD = price of a DVD rental. It is known that P = $5.50, M = $9,000, A = $900, and Pvcr = $3.00. Based on the information given, which of the following statements is false?
A. Movies are normal goods. B. The advertising elasticity of demand for movie tickets is ?0.33. C. Advertising decreases the demand for movie tickets. D. Movies are complements for DVD rentals.
Suppose that when a particular firm decreases its price its total revenue decreases. What kind of demand does this particular firm face?
A. Demand is price inelastic. B. Demand is price elastic. C. Demand is unit elastic. D. Demand is perfectly price elastic.