Which of the following represents how real GDP is calculated?
A. nominal GDP multiplied by the GDP deflator
B. nominal GDP divided by the GDP deflator
C. nominal GDP divided by the population
D. nominal GDP divided by the PPI, the producer price index
Answer: B
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iTunes offers samples of music downloads, and in doing so they
A) further inform customers. B) further reduce customer search costs. C) further expand the range of opportunities available to customers. D) do all of the above.
In the case of Matsushita v. Zenith, the fact that the foreign television manufacturers were able to charge lower prices than their domestic competitors in the U.S
market for televisions was sufficient evidence to conclude that the Japanese firms were engaged in predatory pricing. Indicate whether the statement is true or false
Ticket scalping can increase total surplus in the market for tickets to sporting events
a. True b. False Indicate whether the statement is true or false
Recently, you decided to super-size your fries at McDonald's. On the one hand, your decision to super-size considered the additional costs associated with the super-size, including the additional monetary, caloric and cholesterol intake, as well as the extra time you had to wait for those fries because a new batch was being prepared. On the other hand, you determined that the extra benefits from super-sizing included a few more mouthfuls of satisfaction from an increased portion of fries. The benefits clearly outweighed the costs since you chose to super-size. Which of the following does this illustrate?
a. Marginal analysis b. The law of demand c. Delayed gratification d. Diminishing marginal utility e. Random behavior