For a perfectly competitive firm, marginal revenue equals average revenue because the
a. firm's supply curve is horizontal.
b. industry's demand curve is horizontal.
c. firm's demand curve is horizontal.
d. industry's supply curve is horizontal.
c
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GDP is not a perfect measure of well-being because
A) the value of leisure is included in GDP. B) GDP is adjusted for increases in drug addiction. C) GDP is not adjusted for pollution. D) GDP is adjusted for changes in crime rates.
If the price level falls, the real value of a dollar
a. rises, so people will want to buy more. This response helps explain the slope of the aggregate demand curve. b. rises, so people will want to buy more. This response shifts aggregate demand to the right. c. falls, so people will want to buy less. This response helps explain the slope of the aggregate demand curve. d. falls, so people will want to buy less. This response shifts aggregate demand to the left.
Money market mutual funds sell shares to investors and use the money to buy
A) mortgage-backed securities. B) foreign currency. C) short-term securities. D) overseas assets through foreign direct investment.
Which of the following could cause nominal GDP to decrease next year, but real GDP to increase?
A) The price level rises and the quantity of final goods and services produced rises. B) The price level falls and the quantity of final goods and services produced rises. C) The price level rises and the quantity of final goods and services produced falls. D) The price level falls and the quantity of final goods and services produced falls.