Answer the following questions true (T) or false (F)
1. The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomic topic.
2. Examining the conditions that could lead to unemployment in an economy is an example of a microeconomic topic.
3. Suppose that to increase sales of hybrid vehicles, auto manufacturers are offering large cash incentives. This is an example of a macroeconomic topic.
1. TRUE
2. FALSE
3. FALSE
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Suppose nominal GDP is $2,000 a year and the quantity of money is $400. Then the velocity of circulation equals
A) 10. B) 1/5. C) 2. D) 8. E) 5.
In the long run, a profit-maximizing monopolist
A. earns zero economic profit. B. produces the same amount as a perfectly competitive industry. C. receives a higher price for his output than a perfectly competitive firm. D. produces at the output level that minimizes his long-run average total cost.
If an economy's GDP falls, then it must be the case that the economy's
a. income and saving fall. b. income and market value of all production both fall. c. income falls and market value of all production rises. d. income rises and market value of all production falls.
An efficient solution to the external cost of highway congestion would be to:
A. charge tolls for highway use differentially depending on the time of day. B. impose higher fines for speeding. C. charge uniform tolls for all highway use allowing drivers to distribute themselves more uniformly. D. institute a uniform permit policy, granting each driver a permit to drive a prescribed number of miles per week.