You are a baker. You paid $150K in wages, $50K for dough, $20K for power, $5K in interest for a business loan, $25K in taxes, and made a profit of $10K. How much did you contribution to GDP using the product approach?
A) $80K
B) $85K
C) $190K
D) $260K
C
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"The deadweight loss of a monopoly equals the monopoly firm's profits." Do you agree or disagree? Why?
What will be an ideal response?
Industrial policy is an effort by a government to:
A. regulate prices in particular industries. B. identify the most profitable industries in the world, and adopt them in their country. C. favor some industries over others. D. control markets that are industrial.
Which of the following decreases in labor demand is due to a change in the price of a related resource?
A. The rise of hair salons for both men and women reduces the demand for barbers. B. A decline in the demand for computers in Europe reduces the demand for workers in the domestic computer industry. C. An increase in the price of chemical equipment increases the cost of producing fertilizer, thus decreasing the demand for workers who make fertilizer. D. A decrease in the educational skills of manufacturing workers decreases the demand for such workers.
Which of the following is the main barometer used by the Business Cycle Dating Committee of the National Bureau of Economic Research in determining if the economy has reached a peak?
A. Employment, based on non-farm payrolls B. Industrial production C. Personal income minus government transfer payments D. Manufacturing and trade revenue