If an artisan sells handmade jewelry at a craft fair
A. and does not report the income earned to the Internal Revenue Service, GDP is understated.
B. and does not report the income earned to the Internal Revenue Service, GDP is overstated.
C. and reports the income earned to the Internal Revenue Service, GDP is understated.
D. and reports the income earned to the Internal Revenue Service, GDP is overstated.
Answer: A
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Although the long-run equilibrium price of oil is $80 per barrel, some producers have much lower costs because their oil reserves are relatively close to the surface and are easier to extract
If the low-cost producers have a minimum LAC equal to $20 per barrel, then the difference ($60 per barrel) is: A) an above-normal economic profit. B) an economic rent due to the scarcity of low-cost oil reserves. C) a profit that will go to zero as new oil producers enter the market. D) none of the above
Neighborhood florist shops, restaurants, and travel agencies are most likely organized as
a. labor unions b. corporations c. partnerships d. sole proprietorships e. stock markets