What is the real GDP in year 1 using base year 2?
A) $418.
B) $300.
C) $360.
D) $338.
C
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How does money make the circular flow model more efficient
A. Neither the product nor resource market can exist without money. B. Money gives firms an advantage over households, since they have more money. C. Money makes the product market more important than the resource market D. Having a common medium of exchange, like money, eliminates the need to barter.
A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $3. If the firm is perfectly competitive and the market price of its product is $9, which of the following is true?
A) The firm is producing the profit-maximizing total output. B) The firm should exactly triple output in each of the plants to maximize profit. C) The firm should increase output at each of the plants to maximize profit. D) The firm should decrease output at each of the plants to maximize profit.
The labor supply curve is fundamentally a representation of the trade-off people face between which of the following?
a. work and wages b. work and leisure c. wages and productivity d. technology and wages
When the anticipated rate of inflation declines, the real rate of interest
A) increases. B) decreases. C) is not affected. D) increases exponentially.