The income elasticity of demand for skiing trips to Vermont is greater than one. Thus a trip to Vermont for skiing is ________ good
A) a normal
B) an inferior
C) a unit elastic
D) a price elastic
E) a price inelastic
A
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The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S. ________ and the South Korean ________
A) GNP; GDP B) GDP; GDP C) GNP; GNP D) GDP; GNP
In the above table, if this is a perfectly competitive firm and the market price of the product is $5 and the marginal factor cost of labor is $60, how many units of labor will the firm hire?
A) 2 B) 3 C) 4 D) 6
What is a GDP deflator? Why do some economists consider the GDP deflator to be a better measure of overall inflation than the Consumer Price Index?
Answer the following statement(s) true (T) or false (F)
1. If the real interest rate is 5% and the inflation rate is 3% then the real growth rate in your purchasing power is 8%. profit maximizing company will choose to undertake the project. 2. If a project costs $2000 up front and generates revenues of $500 per year for ten years, then any 3. The higher the interest rate, the higher the price of a bond. 4. If a bond with face value $100 sells for $75, then we say that the bond is selling for a discount of 25%.