Suppose that Year 2 is the base year. Year 1 real GDP is
A) $200.
B) $270.
C) $310.
D) $390.
B
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Which of the following is FALSE?
A. A change in input prices shifts the isoquant map. B. At the optimal input choice, the rate at which the firm can substitute labor for capital in production is equal to the rate at which the firm can substitute labor for capital in the market. C. A change in cost shifts the isocost curve. D. Convex isoquants mean that the marginal rate of technical substitution decreases as the firm substitutes labor for capital. E. none of the above.
What price should a firm charge for a package of two shirts given a marginal cost of $4 and an inverse demand function P = 8 ? 2Q by the representative consumer?
A. $8 B. $4 C. $16 D. $12
In a business cycle, the period following a trough is called an expansion.
Answer the following statement true (T) or false (F)
Refer to the data. In equilibrium, the level of consumption spending will be:
(Advanced analysis) Answer the question on the basis of the following consumption and investment data for a private closed economy. Figures are in billions of dollars. C = 60 + .6Y I = I 0 = 30 A. 170. B. 270. C. 160. D. 195.