If GNP is $200 billion and depreciation is $20 billion, then net national product is
A. $100 billion.
B. $180 billion.
C. $210 billion.
D. $220 billion.
Answer: B
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If Al is risk averse, as his wealth increases, his total utility of wealth ________ and his marginal utility of wealth ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
For years, economists believed that market structure explained the ability of some firms to earn economic profits. Today, economists and business strategists put greater emphasis on
A) the number of countries in which a firm conducts business and the number of employees the firm has in each country. B) the number of years a firm has been in business and the average price of the products sold by the firm. C) the characteristics of individual firms and the strategies their managements use to continue to earn economic profits. D) the size of a firm relative to the industry average and the number of firms in the domestic industry.
When a shortage exists in a market, sellers
a. raise price, which increases quantity demanded and decreases quantity supplied until the shortage is eliminated. b. can raise price without worrying about the loss of sales, which increases quantity supplied and decreases quantity demanded until the shortage is eliminated. c. lower price, which increases quantity demanded and decreases quantity supplied until the shortage is eliminated. d. lower price, which decreases quantity demanded and increases quantity supplied until the shortage is eliminated.
The slope of the consumption function is equal to the marginal propensity to save.
Answer the following statement true (T) or false (F)