Assume that the price of a Bluray player is $50. If Joshua is willing to pay $50 for that Bluray player, his consumer surplus when he buys the BLuray player is:
A. $0.
B. $1.
C. $10.
D. $50.
Answer: A
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In the last three decades, inflation has been relatively low in the U.S. economy, with the Consumer Price Index typically rising what percentage per year?
a. 1% to 2% b. 2% to 3% c. 2% to 4% d. 3% to 4 %
Suppose that Carla's Candy Shop finds that at the current level of output, marginal revenue is below marginal cost and average variable cost is below price. If the market price is held constant, Carla's Candy Shop should __________ in order to maximize profits
a. raise output b. reduce its price c. reduce output d. close down e. maintain its current output level
Better short-run use of current capacity
A. Shifts the aggregate supply curve outward, while long-run economic growth moves the economy up the aggregate supply curve. B. Increases capacity, while long-run economic growth increases capacity utilization. C. Moves the economy closer to the production possibilities curve, while long-run growth shifts that curve outward. D. And long-run growth both shift the aggregate supply curve outward.
In the Keynesian model of an open economy, a temporary decrease in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy.
A. lower; increase B. lower; decrease C. raise; increase D. raise; decrease