Answer to Question #236986 in Economics of Enterprise for Likenaw

Question

Which of the following does not cause an increase in supply? A. An increase in the commodity’s price. B. An improvement in technology. C. A reduction in factor prices. D. A decrease in the cost of materials.

Which one of the following is not a true statement? A. Nominal GDP is a measured by removing the effect of price change on GDP. B. Real GDP is the value of currently produced goods and services measured at constant price C. Nominal GDP does not compare a country’s economic performance over time. D. Unproductive activities should be excluded from National Income Accounting.

MC curve and AC curve are the mirror reflections of A. AVC and AFC B. AVC and TVC. C. MP and AP. D. TP and AP.

Answer 1

1. A. An increase in the commodity’s price.

An increase in the commodity's price will reduce the demand for the respective product. This will for the producers to reduce the supply.

2. D. Unproductive activities should be excluded from National Income Accounting.

National income accounting dictates all the income spent on events related to the government. Whether productive or not, it is important to be accounted for to determine the current position.