In a command economy, the basic economic questions are answered by:
a. central authority.
b. None of the answers are correct.
c. individual buyers and sellers.
d. the traditional methods.
a
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If the unit cost of output for a computer is $2,000 and if firms' average markup is 10 percent, what is the total cost to the consumer?
a. $2,000 b. $2,010 c. $2,020 d. $2,200 e. $20
If the economy is in equilibrium at $1,000 billion national income and if the multiplier is 3 and intended investment is $400 billion, what happens to national income when intended investment decreases to $380 billion? It will
a. increase to $1,020 billion b. increase to $1,060 billion c. decrease to $980 billion d. decrease to $940 billion e. decrease to $970 billion
A perfectly inelastic demand curve indicates that
a. a producer can sell as many units as desired at the market price but no units above the market price. b. for a given percent change in price, the quantity demanded rises by the same percentage. c. price has no effect on the quantity demanded. d. the percent change in price is less than the percent change in quantity demanded.
Other things being constant, countries with higher rates of saving
a. will have smaller GDPs than countries with lower rates of saving. b. will have higher rates of investment, but slower growth. c. will have higher rates of investment and growth. d. will be operating at less than full employment and potential output.