The omission of household production causes actual economic production to be underestimated
Indicate whether the statement is true or false
TRUE
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The main difference between the price-quantity graph of a perfectly competitive firm and a monopoly is
A) that the competitive firm's demand curve is horizontal, while that of the monopoly is downward sloping. B) that a monopoly always earns an economic profit while a competitive company always earns only normal profit. C) that a monopoly maximizes its profit when marginal revenue is greater than marginal cost. D) that a monopoly does not incur increasing marginal cost.
Unemployment that is of a short duration to allow time to find a new job is:
a. cyclical unemployment. b. frictional unemployment. c. durational unemployment. d. structural unemployment.
Which is not a determinant of the price elasticity of demand for most products?
A. The proportion of most consumers' budget spent on the product B. The slope of the demand curve for a product C. The amount of time consumers have to adjust their purchases of a product to a change in its price D. The number of good substitutes available for the product
In monopoly and perfect competition, a firm should expand production when
A. Price is above marginal cost. B. Price is below marginal cost. C. Marginal revenue is below marginal cost. D. Marginal revenue is above marginal cost.