Which of the following will be categorized as an intermediate good in national income accounting?
a. The value of oregano used as a seasoning for pizzas
b. The crops consumed by a farmer's family members
c. The present value of a car produced a couple of years ago
d. A clunker sold during the current year
e. The value of an antique piece of jewelry handed down over generations in a family
a
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Exhibit 4-3 Supply and demand curves
Beginning from an equilibrium at point E2 in Exhibit 4-3, an increase in demand for good X, other things being equal, would move the equilibrium point to:
A. E1. B. E2. C. E3. D. E4.
A purely competitive firm is currently in short-run equilibrium and its MC exceeds its ATC at its current output level. It can be concluded that:
A. Firms will leave the industry in the long run B. The firm is realizing an economic profit C. The firm is suffering a loss D. The firm will shut down in the short run
Which of the following is an example of an automatic stabilizer during a recession?
A) A decrease in tax revenue due to an increase in unemployment B) An increase in money supply due to a decrease in bank deposits C) An increase in interest rates due to a decrease in investment D) A decrease in inflation due to an increase in consumption
When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A) producer surplus. B) monopoly profits. C) opportunity cost. D) deadweight loss.