Refer to the data. For the years shown, the growth of:
Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the question on the basis of these data.
A. real GDP has exceeded the growth of nominal GDP.
B. nominal GDP accurately reflects changes in real output.
C. nominal GDP overstates increases in real output.
D. nominal GDP understates increases in real output.
C. nominal GDP overstates increases in real output.
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The idea that "supply creates its own demand" is attributed to which of the following economists?
A) Adam Smith B) David Ricardo C) A. C. Pigou D) J. B. Say
The ________ of a project is the sum of all costs and benefits associated with the project, using present values to make the costs and benefits comparable
A) discounted value B) cumulative present value C) net present value D) gross present value
The above figure shows the market for a given product. Defining welfare as consumer surplus plus producer surplus, calculate the social welfare associated with perfect competition, single-price monopoly, and a perfect-price-discriminating monopoly
Which market structure(s) maximize social welfare?
In long-run equilibrium, every perfectly competitive firm
a. maximizes its output b. chooses its plant size and output level to operate at minimum long-run marginal cost c. chooses its plant size and output level to operate at minimum long-run average total cost d. earns an economic profit e. suffers an economic loss