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Gross domestic product (GDP) is an inferior measure of a nation's product because: A) no allowance is made for the fact that people have to pay taxes on their income. B) no allowance is made for the fact that people save some of their income. C) no allowance is made for the fact that some of the product is added to the capital stock. D) no allowance is made for international trade. E) no allowance is made for the fact that some of the product must be used to replace investments that become obsolete.
Why might we not expect free trade to affect the general unemployment level in the economy, but it will affect some more than others?
Henry initially consumes the quantity of pens and pencils shown as B in figure 2. After the prices of both goods change, he buys combination A. From figure 2 and these facts, it must be true that . . .
Which of the following statements concerning the variables in a regression analysis is true?
Recall from Exercise Ul the population of animals fighting over a food source worth 200 calories. Assume that, as in part (b) of that exercise, the cost of a fight is 150 calories per fighter. Assume also that a third phenotype exists in the populati..
for each bundle that the consumer chooses, show the indifference curve that goes through that bundle. Make sure to label your graph carefully and accurately.
Analyze the given graph of a linear programming model with a single constraint and the objective function: Determine the values by which the constraints c1 and c2 must decrease or increase in order to change the current solution point shown in the gr..
State whether the following statements are True, False or Uncertain. Provide a short justification for your answer. (i) Bond A is a 5year bond with a 9% coupon rate and a YTM of 9%. Bond B is a 15year bond with a 8% coupon rate and a YTM of 10%. Bo..
The company's settlement obligations are expected to raise its average total cost per pack by about $60. Illustrate what effect will this have on its optimal price.
By using calculus show that the production function exhibits diminishing returns to labor.
According to U.S. Department of Agriculture econominist Karl Fox, "An increase of 10 percent in the farm price of the "average" food product would be associated something like a 4 percent increase in the retail price and perhaps a 2 percent decreases..
When advertising fosters brand loyalty, critics claim that it. A key determinant of recent labor productivity has been. When a profit-maximizing firm makes a decision to employ a worker, that decision is based on. For a perfectly competitive firm to ..
A pharmaceutical company has already spent 1 million dollars in research for a new drug and now has to make a decision. The company can either terminate the research program or it can move to the development phase. If the company moves to the develop..
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