If both the production of goods and services increase and prices rise, then the change in nominal GDP
A) definitely understates the change in production.
B) definitely accurately reflect the change in production.
C) definitely overstates the change in production.
D) either understates or might accurately reflect the change in production.
E) More information is needed to determine how the change in nominal GDP compares to the change in production.
C
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If the demand for land shifts upward, rents will be
A. earned by some land that was formerly unprofitable. B. lost to many landowners. C. diminished for society as a whole. D. taxed away to help pay the costs of government.
If a monopolist produces to a point at which marginal revenue is less than marginal cost then
A) the firm should increase output. B) the firm should reduce output. C) the firm is maximizing profits. D) we do not know if the firm should increase or reduce without more information.
When you purchase a new pair of jeans you do so in the
A) factor market. B) input market. C) product market. D) resource market.
A cartel is a group of firms that attempts to
A) maximize joint revenue. B) maximize joint profit. C) behave independently. D) increase consumer surplus.