Deadweight loss declines in size when a unit of output is produced for which
A. consumer surplus exceeds producer surplus.
B. marginal cost exceeds marginal benefit.
C. producer surplus exceeds consumer surplus.
D. maximum willingness to pay exceeds minimum acceptable price.
Answer: D
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Which of the following is true?
A) Potential GDP fluctuates around nominal GDP. B) Nominal GDP fluctuates around real GDP. C) Real GDP never equals potential GDP. D) The Okun Gaps are much larger than the Lucas Wedge. E) Real GDP fluctuates around potential GDP.
When a monopoly increases its output and sales,
a. both the output effect and the price effect work to increase total revenue. b. the output effect works to increase total revenue, and the price effect works to decrease total revenue. c. the output effect works to decrease total revenue, and the price effect works to increase total revenue. d. both the output effect and the price effect work to decrease total revenue.
Suppose that the consumer price index at year-end 2004 was 140 and by year-end 2005 had risen to 150. What was the inflation rate during 2005?
What will be an ideal response?
Consumer goods:
A.) Account for over two-thirds of total U.S. output. B.) Include nondurable goods but not durable goods. C.) Account for a smaller portion of GDP than government services. D.) Include durable and nondurable goods but not services.