Using the income approach, net interest is included because
A. households both receive and pay interest.
B. households pay but do not receive interest and firms receive but do not pay interest.
C. firms pay but do not receive interest and households receive but do not pay interest.
D. it is income to the government but not to households nor firms.
Answer: A
Economics
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Agricultural price supports are
A) price ceilings. B) price floors. C) quantity quotas. D) taxes.
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Cartel members have an incentive to cheat on the cartel because:
a. the cartel does not maximize profits. b. the cartel price is the competitive price. c. each member's output quota is too high. d. each member's MR is not equal to the cartel's MC. e. the industry profit would be higher under competitive conditions.
Economics