A final good is one that
A) is purchased as an input in the production process.
B) is purchased by its final user.
C) is a natural resource used to produce a good.
D) is used in the production of another good.
B
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If 1 US dollar costs 1.25 Euros, then 1 Euro must cost _____ US dollars
a. 0.5 b. 0.8 c. 1.0 d. 1.25 e. 1.5
One reason the total sum of the income categories does not equal GDP is that
A) taxes are generally larger than subsidies and the depreciation of capital is negligible. B) GDP values goods and services at retail prices and the income approach values them at wholesale cost. C) people do not spend all their income, so the value of consumption expenditure is less than the value of wages. D) GDP does not include depreciation, which is part of the income categories. E) GDP values goods and services at market prices and the income approach values them at factor cost.
One of the reasons that a firm can be ________ efficient than a market is that the firm ________
A) more; does not have any economies of scale B) more; lowers transactions costs C) less; has economies of scope D) less; produces lower profits
Suppose that in a free market 2,000 patients purchase an operation to receive an artificial heart at a price of $500,000 per operation. Without the heart, each patient will die. The government decides this price is too high and imposes a maximum price of $200,000 . Everything else equal,
a. more patients will now die. b. fewer patients will now die. c. more patients will now die only if the demand curve is vertical. d. more patients will now die only if the demand curve is horizontal.