Refer to Table 19-31. The table above represents hypothetical data from the National Income Accounts for 2015. Use the data to calculate personal income and disposable personal income
What will be an ideal response?
Personal Income = National income - Retained earnings + Transfer payments + Interest on government bonds.
Substituting the table values:
Personal Income = $7,400 - 480 + 1,000 + 450
= $8,370 billion.
Disposable personal income = Personal Income - Personal Taxes
= $8,370 - 1,100 = $7,270 billion.
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When compared to a perfectly competitive industry, in a monopoly:
A) both consumer surplus and social surplus are larger. B) consumer surplus is lower but social surplus is larger. C) both consumer surplus and social surplus are smaller. D) consumer surplus is higher but social surplus is smaller.
A firm maximizes profits when the ________ equals the ________
A) actual marginal product of capital; actual marginal product of labor B) actual marginal product of capital; expected marginal product of capital C) expected marginal product of capital; the opportunity cost of capital D) expected marginal product of capital; user cost of capital