Categories of U.S. consumer spending, ranked from largest to smallest, are
a. housing, food & beverages, education & communication, and transportation.
b. education & communication, housing, food & beverages, and transportation.
c. food & beverages, housing, transportation, and medical care.
d. housing, transportation, food & beverages, and medical care.
d
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Peter's Pencils is a perfectly competitive company producing pencils. Suppose Peter is producing 1,000 pencils an hour. If the total cost of 1,000 pencils is $500, the market price per pencil is $2, and the marginal cost is $2, then Peter
A) makes an economic profit because marginal revenue is equal to marginal cost at this output level. B) should decrease his output to increase his profit. C) is maximizing his profit and is making an economic profit. D) should increase his output to increase his profit. E) is not maximizing his profit but is making zero economic profit anyway.
Which of the following accurately indicates how the recent outbreaks of terrorism have influenced the GDP of western nations?
a. Additional expenditures on security designed to protect individuals from terrorist attacks are subtracted from GDP. b. Additional expenditures on security designed to protect individuals from terrorist attacks are added to GDP as part of output. c. Since expenditures on the prevention of terrorism do not contribute to the well-being of individuals, they exert no impact on GDP. d. Since terrorism is merely a redistribution of output, expenditures on the prevention of terrorism do not contribute to GDP.