Undistributed profits ________ counted as part of GDP because ________
A) are not; households are not paid by the firms
B) are; they can be used to buy other goods
C) are; they are considered income paid to households and loaned back to firms
D) are not; they are considered an intermediate good
E) are; firms are required to pay corporate income taxes on them
C
You might also like to view...
In a collusive agreement between two duopolists in an oligopoly, each firm has an incentive to cheat on the agreement because the firm's price
A) exceeds its marginal cost. B) exceeds its marginal revenue. C) is less than its average total cost. D) None of the above answers is correct.
Are advertising and brand names efficient?
What will be an ideal response?
Which of the following changes would tend to both decrease the quantity of a good traded and increase the price?
a. An increase in demand. b. A decrease in demand. c. An increase in supply. d. A decrease in supply.
When employment discrimination results from the personal prejudices of employers, economic theory suggests that
a. it is costless for employers to discriminate against groups they do not like. b. discrimination by an employer will reduce production costs since the employer can pay lower wages. c. the wages of employees who are discriminated against will actually rise. d. an employer who discriminates will experience higher costs.