Which of the following would result in GDP for an economy equal to $10 trillion?
A) C = $7 trillion
I = $2 trillion
G = $4 trillion
NX = $3 trillion B) C = $6 trillion
I = $2 trillion
G = $1.5 trillion
NX = -$2 trillion C) C = $4 trillion
I = $3 trillion
G = $2 trillion
NX = -$1 trillion D) C = $5 trillion
I = $5 trillion
G = $2 trillion
NX = -$2 trillion
D
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Jason, a high-school student, mows lawns for families in his neighborhood. The going rate is $12 for each lawn-mowing service
Jason would like to charge $20 because he believes he has more experience mowing lawns than the many other teenagers who also offer the same service. If the market for lawn mowing services is perfectly competitive, what would happen if Jason raised his price? A) If Jason raises his price he would lose all his customers. B) He would lose some but not all his customers. C) Initially, his customers might complain but over time they will come to accept the new rate. D) If Jason raises his price, then all others supplying the same service will also raise their prices.
In general, perfectly competitive firms maximize their profit by producing the level of output at which:
A. total cost is minimized. B. total cost equals total revenue. C. marginal cost is minimized. D. marginal cost equals price.
One source of inefficiency associated with monopolies stems from their insulation from competition and thus reduced incentive to cut costs and innovate.
Answer the following statement true (T) or false (F)
Which of the following lists two things that both increase the money supply?
a. the Fed buys bonds and lowers the discount rate. b. the Fed buys bonds and raises the discount rate. c. the Fed sells bonds and lowers the discount rate. d. the Fed sells bonds and raises the discount rate.