When a firm is a price maker
A) price is equal to marginal revenue.
B) price is greater than marginal revenue.
C) price is less than marginal revenue.
D) price is equal to marginal cost.
B
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What is the real interest rate if the nominal interest rate is 7 percent and the expected inflation rate is 7 percent?
Assume that the graphs show a competitive market for the product stated in the question.
Select the graph above that best shows the change in the digital camera market when the productivity of workers who produce cameras increases.
A. graph (1) B. graph (2) C. graph (3) D. graph (4)
The substitution effect from a fall in the price of a gallon of gasoline is shown in the above figure by the movement from
A) point A to point C. B) point A to point B. C) point B to point C. D) point A to point B and then to point C.
Potential GDP in the United States
A) declines over time. B) changes over a given business cycle. C) does not change over time. D) grows as the economy grows.