In long-run equilibrium, a monopolistically competitive firm is producing at a point on its average total cost curve where:
a. price equals marginal cost.
b. price equals average total cost.
c. price equals marginal revenue.
d. marginal revenue equals average total cost.
Ans: b. price equals average total cost.
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The GDP of Country X in a particular year was $820,000. If the value added by U.S
workers in the production of various goods and services in Country X during that year was worth $150,000 and the value added by the workers of Country X in the production of various goods and services in other countries during that year was worth $130,000, the GNP of Country X during that year was ________. A) $1,140,000 B) $135,000 C) $8,235,000 D) $800,000
Which of the following governmental expenditures are not included in gross domestic product?
a. The construction of federal buildings b. Social Security payments c. Salaries for senators d. Purchases of new defense weapons