"Net exports" rather than "exports" are included in demand/expenditures, because:
a. Actually, exports are included and not net exports because only exports are a source of demand.
b. Imports are counted in personal consumption expenditures. Therefore, net exports instead of just exports are included in aggregate demand.
c. Imported goods and services are a part of personal consumption, gross private domestic Investment, and government spending. Therefore, net exports instead of just exports are included in demand.
d. Neither exports nor net exports is included in aggregate demand.
e. None of the above.
.C
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A sales tax imposed on tires ________ consumer surplus and ________ producer surplus
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; does not change
All of the following are measures of market power except the:
A) Lerner Index. B) Minimum-Efficient Scale Index. C) four-firm concentration ratio for an industry. D) Herfindahl-Hirschman Index.