The real GDP in a nation has just increased from $2 billion to $2.1 billion
A) This country has experienced economic growth because there is a $.1 billion increase in real GDP.
B) We do not know if this country experienced economic growth since the increase in the population was not given.
C) We do not know if this country experienced economic growth since information on nominal GDP was not given.
D) This country did not experience economic growth since $.1 billion is not a large number.
B
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When the market for gasoline in Motorland is in equilibrium, the market price of gasoline is ________ the marginal social cost
A) $1.50 above B) $1.50 below C) equal to D) $1.20 above
In a free-market economy, prices coordinate society's decisions about
a. how and for whom to produce. b. what, how, and for whom to produce. c. how and for whom to produce but not how much to produce. d. how much and for whom to produce but not how to produce.
Suppose that flower gardens create a positive externality equal to $1 per plant. What is the relationship between the equilibrium quantity and the socially optimal quantity of plants grown?
a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price. At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12 . How much total profit is the firm earning at this price?
a. $5 b. $25 c. $50 d. $140