Assume an economy that is producing only one product. Output and price data for a three-year period are as follows. Answer the question on the basis of these data. year units of output price per unit 1 20 4 2 25 4 3 30 6 Refer to the above data. If year 2 is chosen for the base year, in year 3 nominal GDP and real GDP, respectively, are:
a) $180 and $30.
b) $30 and $5.
c) $180 and $120.
d) $120 and $100.
c) $180 and $120.
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The case of production with a single variable input is analogous to
A. changing the use of land, labor, and capital in production by a constant absolute amount. B. a controlled laboratory experiment in which the scientist permits one variable to change at a time. C. changing the use of land, labor, and capital in production by a constant percentage. D. specialization in one particular product by a company.
A 1986 study of segregation on early 20th century U.S. streetcars found that the primary source of racial segregation on streetcars was
a. a longstanding tradition of racial segregation. b. policies implemented by the owners of streetcars. c. laws passed by the government. d. threats by white people to boycott the streetcars if they were forced to sit with black people.
With free trade the United States imports about half of its steel consumption from China. Show this graphically, using a graph of the U.S. national market for steel (including both domestic steel supply and imported steel supply), and explain the impact on the United States of an export subsidy on steel provided by the Chinese government. (Assume the Chinese export subsidy lowers the price that Chinese steel exporters charge.) Would it be beneficial for the United States to impose an equal amount of countervailing duty on the import of steel? Why or why not?
What will be an ideal response?
An increase in the productivity of a factor of production will
A. cause a firm to move down the marginal revenue product curve. B. shift its marginal revenue product curve to the right. C. cause a firm to move up the marginal revenue product curve. D. shift its marginal revenue product curve to the left.