A Japanese Worker, Working in the U

question 21

True/False

A Japanese worker, working in the U.S., deposits some money in his bank account, and his son collects the money from a branch of the same bank in Japan. This activity reduces the U.S. GDP.

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Definitions:

ATC

Stands for Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the number of units produced.

Economic Profits

A reiteration emphasizing the calculation that includes total revenues minus total costs, where total costs consider both the explicit and implicit costs.

Competitive Price-searcher Market

A market structure where firms have some degree of market power, enabling them to set prices above marginal cost, but must consider competitor prices to attract consumers.