Assume that a firm called Anonymous of Toronto decides to increases all of its inputs by 10 percent and as a consequence its output increases by 10 percent, then Multiple Choice Anonymous is encountering diseconomies of scale. Anonymous is encountering constant returns to scale. Anonymous is encountering economies of scale. Anonymous' long-run ATC curve will be rising.

The table below is extracted from Happyland Republic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow.   Items Base year 2019 2020     Production Price Production Price Used cloth (units) 4,000 50.00 5,000 60.00 Components used tractor factory production (units) 8,000 500.00 11,000 1,200.00 Cloth (units) 8,000 25.00 12,000 30.00 Beef gifts during cultural festival (Kg) 1,500 2.00 1,700 3.00 Milk (litres) 5,000 1.30 7,000 2.50 Computers (Units) 2,000 500.00 2,500 600.00 Printers (Units) 500 300.00 400 355.00 Raw materials for car assembling plant (Units) 4,500 250.00 4,450 300.00   Calculate Happyland Republic’s nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if 2019 is used as the base year. ANSWER:        Double counting must be avoided when measuring GDP. State and examine four…

Topic: Aggregate Demand

Family Flowers employs 17 people, of whom 14 earn gross pay of $640.00 each and 3 earn gross pay of $720.00 each on a weekly basis. What is the employer's share of total social security and Medicare taxes for the first quarter of the year? (Social security tax is 6.2% of wages up to $128,400. Medicare tax is 1.45% of all wages.)

Essay Topic: Economic Inequality  Introduction/Argument