An outcome is socially optimal if it:
A. maximizes total economic surplus.
B. is determined by the government.
C. leaves no unexploited opportunities for individuals.
D. is an equilibrium outcome.
Answer: A
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In years with inflation, nominal GDP increases ________ real GDP
A) faster than B) slower than C) at the same rate as D) sometimes faster, sometimes slower, and sometimes at the same rate as
If an average cost pricing rule is imposed on the firm in the figure above, the price will be
A) $5 per unit. B) $25 per unit. C) $15 per unit. D) $20 per unit.
Suppose y = k1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, real GDP per worker is ________
A) $2 B) $4 C) $8 D) $16
This table shows individual demand schedules for a market.
According to the table shown, what can be said of Betty and Barney's demand for this good?
A. Betty's and Barney's demand both follow the law of demand.
B. Barney's demand follows the law of demand, but Betty's does not.
C. Betty's demand follows the law of demand, but Barney's does not.
D. Neither Betty's nor Barney's demand follows the law of demand.