Suppose there are only two goods (Good A and Good B) and the average person buys 8 of Good A in a year and 6 of Good B. If the Price of Good A is $8 and the Price of Good B is $6, the price of the market basket
A. is 50.
B. is 36.
C. is 100.
D. is 64.
Answer: C
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Refer to the above figures. Which panel(s) represent the effect of an increase in the price level?
A) Panel A only B) Panels A and C only C) Panel D only D) none of the panels
Which of the following is a critique of GDP discussed in the text?
Select one: a. GDP does not account for resource depletion. b. GDP does not account for well-being. c. GDP does not include household production. d. All of the answers listed.
Graph a and graph b have several differences. What difference between the two shows a failure to meet productive efficiency?
a. In graph a, ATC touches the demand curve at P equals MC.
b. In graph b, the demand curve is downward sloping.
c. In graph a, P equals both MR and MC.
d. In graph b, MC is less than P*, and q* is less than it could be.
In a market, there are many firms selling differentiated products. This market is:
A. a monopoly. B. an oligopolistic market. C. a competitive market. D. a monopolistically competitive market.