​Suppose That You Are Planning to Buy a New Cellphone

question 183

Multiple Choice

​Suppose that you are planning to buy a new cellphone. Your choice is a new Samsung phone or HTC model. Samsung phones are manufactured in Korea and HTC phones are manufactured in Taiwan. Assuming that the price of each phone is the same, will your purchase of the Samsung or the HTC affect U.S. GDP differently?​

• A)​No, both have the same impact: your purchase will increase consumption expenditures and decrease net exports by the same amount.
• B)​Yes. This depends upon which cellphone carrier you choose.
• C)​No, because Samsung's production only affects Korea's GDP; and HTC's production only impacts Taiwan's GDP.
• D)Yes. The country from which a product is imported has different effects on U.S. GDP because it depends upon trade agreements with the countries.

Distinguish between fixed, variable, and total costs in business operations.

Evaluate decision-making processes in operational and financial contexts.

Understand the concept of average cost and how it is affected by changes in the quantity of units produced and workers hired.

Learn about the relationship between marginal cost (MC), marginal revenue (MR), and their impact on hiring and production decisions.

---

Definitions:

Depth Perception

The visual ability to perceive the world in three dimensions and to understand spatial relationships.

Presbyopia

A natural age-related condition where the eye's lens loses its ability to focus properly, making it difficult to see objects up close.

Lens

A lens is a piece of transparent material with curved surfaces, typically used in glasses and optical devices to focus or disperse light rays and form images.

Tinnitus

A condition characterized by hearing noises not caused by an external source, often described as ringing, buzzing, or humming in the ears.