Which of the following is included in Gross Domestic Product (GDP)?
A. purchases of stocks and bonds by individuals
B. sales of financial assets to foreign firms
C. purchases of stocks and bonds by firms
D. investment spending on capital goods
Answer: D
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Figure 11-4
Physicians have two types of patients: private patients who pay directly or with insurance, and Medicaid patients whose care is paid for by the state. Physicians must lower prices to attract more private patients, but they can add unlimited Medicaid patients at a constant price. The situation facing Dr. Casey is depicted in Figure 11-4. Units of medical service (say, number of patients × number of visits) are measured on the horizontal axis. How many units of medical service will Dr. Casey deliver to Medicaid patients?
A. OA B. AC C. OC D. OD
Why doesn't the age-earning cycle continuously increase until retirement age?
What will be an ideal response?
The force that leads to zero economic profits for monopolistically competitive firms in the long run is
A. excess capacity. B. price wars among firms. C. entry by new firms. D. excessive advertising.
The recency effect is:
A. accounting for most recent profits or losses first on financial statements. B. a basic human tendency to overvalue recent experience when trying to predict the future. C. earning a profit by betting against what everyone else is doing. D. a hotly debated concept among psychologists and economists.