Use the following information to answer the next several questions:Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2016, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively. Based on the information in Scenario 1, real GDP grew by about ________ percent from 2015 to 2016.
A. 23
B. 31
C. 62
D. 162
Answer: A
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If the economy is characterized by constant returns to scale, then a
A) doubling of inputs will lead to a more than two-fold increase in output. B) doubling of inputs will lead to a constant output. C) doubling of inputs will lead to a two-fold increase in output. D) doubling of inputs will lead to a less than two-fold increase in output.
The money demand curve will shift to the left if real GDP ________ or if the price level ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
U.S. corporations are not motivated to protect the interests of small shareholders
a. True b. False
Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, if you earn a salary of $40,000 in the first year and all prices are cut in half in the next year. How will this affect the time it takes to pay off your school loans, assuming that you put all your earnings into paying it off? Assume that your debt is $40,000.
A. It will cut the payoff time to 1/3 of the original time. B. It will cut the payoff time to 1/2 of the original time. C. It will cut the payoff time to 2/3 of the original time. D. It will double your payoff time.