The price of a gallon of gasoline at the pump increased by 5 percent at the same time that the inflation rate was also 5 percent. The nominal price of gasoline ________, and the real price of gasoline ________.
A. did not change; increased
B. increased; did not change
C. did not change; did not change
D. increased; decreased
Answer: B
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Which of the following is most likely to be a variable cost in the short run?
a. A fee paid to obtain a license. b. The cost of owning machinery. c. The energy costs of running a factory. d. Rent payments for office space.
The BRICs share all of the following EXCEPT
A) they are getting a rising share of international trade and foreign investment. B) they are easy places to do business. C) their governments have a lot of power and authority in economic affairs. D) to varying degrees they all present a new model, sometimes referred to as state capitalism.
Which of the following is true about perfect competition?
a. Each firm faces a downward-sloping demand curve. b. Each firm must face a horizontal demand curve. c. Firms are price-makers. d. Marginal cost equals average cost. e. Firms can increase sales by lowering their price.
The U.S. dollar bill
a. is fiat money b. cannot be used as a medium of exchange c. is backed by gold d. cannot be used as a store of value e. cannot be used as a payment for debts