When the price level in the United States rises, then net exports should
A. rise and equilibrium real GDP should increase.
B. fall and equilibrium real GDP should increase.
C. fall and equilibrium real GDP should decrease.
D. rise and equilibrium real GDP should decrease.
Answer: C
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When compared with a perfectly competitive market with identical costs of production, a pure monopoly will produce ________.
A. more output and charge the same price B. less output and charge the same price C. less output and charge a higher price D. more output and charge a higher price
Society might argue that there are cases in which it is appropriate to resist price increases in situations where scarcity is serious. Included would be the case of
A. unrestrained monopoly that would otherwise succeed in extracting funds from the public. B. taxes imposed on products capriciously and inappropriately. C. rising prices falling so heavily on the poor that rationing becomes preferable. D. All of the responses are correct.
To assess whether or not a good is normal or inferior, economists are interested in the cross price elasticity of demand
a. True b. False Indicate whether the statement is true or false
With an increase in income, a consumer can increase the quantity consumed of
a. only good Y. b. only good X. c. either good, but not both. d. either or both.