Question

In calculating Gross Domestic Product for a country, we exclude the value of net factor incomes earned abroad.

True

False

Question 6 (1 point)

The substitution effect of a price change is strictly negative.

True

False

Question 7 (1 point)

Suppose if the price of a product is changed from $ 1.50 to $ 2.00 and its quantity demand also changes from $ 200 to $ 100, then the price elasticity of demand (elasticity coefficient) is:

a	66.66
b	2.33
c	50.3
d	28.57

Question 8 (1 point)

In the short-run at least one factor of production must be:

a	Fixed
b	Variable
c	Quasi-variable
d	An intermediate input alone.

Question 9 (1 point)

Economic profit incorporates :

a	Only explicit costs
b	Only implicit costs
c	Both explicit and implicit costs
d	Historical costs

Answer 1