Ceteris paribus, an increase in the price of a good will cause the:
a. quantity demanded of the good to increase
b. quantity supplied of the good to decrease.
c. supply of the good to increase.
d. consumer surplus derived from the good to decrease.
d
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"Crowding in" refers to federal government deficits:
a. used for public infrastructure that will offset any decline in business investment. b. which reduce private business and consumption spending. c. which reduce future rates of economic growth. d. all of these.
Answer the question on the basis of the following information: Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per unit prices of these three goods are A = $2, B = $3, and C = $1. Refer to the above information. If the per unit prices of the three goods each were $1 in a base year used to construct a GDP price index, then real GDP in the current year is:
a) $110. b) $115. c) $45. d) $160.
A merger between Bank of America and Citibank would be a ____ merger.
A. horizontal B. vertical C. conglomerate D. diversifying
The United States economy is generally operating _________ the production possibilities curve.
A. inside B. outside C. on