GDP can increase from one year to the next by:
A) increases in prices while quantities of goods and services are constant.
B) increases in the quantities of goods and services produced while prices remain constant.
C) both prices and quantities of goods and services increase.
D) all of the above.
D
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If perfectly competitive lawn care firms are making an economic profit, then
A) wages will be bid up until the economic profit are gone. B) the firms must be superior and will continue to make an economic profit. C) new firms will enter the industry. D) they are not equating marginal revenue to marginal cost. E) government regulation will be imposed to decrease their profit.
When Jack's income increases by $5,000, he spends an additional $4,000 dollars. This implies that his marginal propensity to consume is 1.25
Indicate whether the statement is true or false
Which of the following is NOT a real world factual conflict with the neoclassical growth model?
A) Income per capita varies greatly across countries. B) Poor countries do not have a higher rate of return on capital. C) Immigrant labor from poor countries experiences very small increases in income when it moves to rich countries. D) Poor countries' income levels have not converged to the income levels of rich countries.
You are considering buying a store. The storeowner gives you an estimate of the net profits of the store on a typical day. The owner has most likely given you the figures for the day when
a. Sales are low, costs are high b. Sales are very close to costs c. Sales are high, costs are low d. All of the above