If the price of inputs rises and foreign income rises:
a. Price index falls, and real GDP rises.
b. Price index falls, and real GDP falls.
c. Price index falls, and the change in real GDP is uncertain.
d. Price index rises, and the change in real GDP is uncertain.
e. The change in price index is uncertain, and real GDP falls.
.D
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A monopolistically competitive firm shuts down in the short run if ________
A) marginal revenue equals marginal cost B) total revenues do not cover variable costs C) marginal revenue covers average fixed costs D) average total cost exceeds price
The payments system is
A) the method of conducting transactions in the economy. B) used by union officials to set salary caps. C) an illegal method of rewarding contracts. D) used by your employer to determine salary increases.
According to the income approach, the largest component of national income is:
a. government spending. b. proprietor's income. c. net interest. d. personal consumption expenditures. e. compensation of employees.
GDP measures the output produced within a nation's borders
a. True b. False