Refer to the information provided in Table 21.10 below to answer the question(s) that follow. Table 21.10
Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 1 is
A. 98.
B. 100.
C. 112.
D. 120.
Answer: B
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Frozen Treats and Dairy Treats are two ice cream firms that are competing with each other. If Frozen Treats announces an upcoming price change next month, it may be signaling to Dairy Treats its intent to engage in ________.
A) a Cournot oligopoly B) tacit collusion C) a Chamberlin oligopoly D) a Stackelberg oligopoly
Describe the U.S. Social Security system and explain how it is funded.
What will be an ideal response?
Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output, marginal cost is $180 and increasing, and average variable cost is $160 . Assuming it wants to maximize its profits, it should: a. increase output
b. decrease output, but not shut down. c. maintain its current output rate. d. shut down.
If nominal GDP rises: a. we can be sure the price level has risen. b. real GDP may rise or fall
c. real GDP must rise. d. real GDP must fall.