Real GDP measures ________
A) the total amount of income of every person and firm in the economy
B) the percentage of income produced by workers and firms
C) how rapidly the overall level of prices is rising
D) how many hours the average U.S. citizen works a year
E) how many automobiles are produced in a month
A
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By looking at the marginal cost and marginal revenue curves, you can find out
a. if this firm should shut down. b. if this is a profitable business. c. at what output the firm would maximize profits or minimize losses. d. All of these.
A fall in the price level
A) increases the real value of money balances, which causes borrowing to decrease, leading to a decrease in investment and total planned real expenditures. B) causes exports to rise and imports to fall, leading to an increase in total planned real expenditures. C) leads to an increase in total planned real expenditures because of the indirect effect. D) causes total planned real expenditures to increase as long as the fall is less than the fall in the price level in other countries.
Suppose that Far North Canadian Lumber, Ltd., sells lumber in Canada at a price of $1,000 per 1,000 board feet and exports the same lumber to the United States at a price of $600 per 1,000 board feet. U.S. Lumber, Inc., produces and sells lumber for $700 per 1,000 board feet in the United States. Is Far North Canadian Lumber dumping lumber in the United States?
a. Yes; its price in Canada is greater than its price in the United States. b. Yes; its price in Canada is greater than U.S. Lumber's price. c. No; its price in the United States is less than U.S. Lumber's price. d. No; it is maximizing its profits when it price discriminates between the United States and Canada.
Consider a market characterized by two firms that set the same price in the market, P = $10. Total market demand is QT = 100 ? 2P, of which the two firms share equally. Based on this information, we can conclude:
A. the HHI = 2,500 and the Rothschild index is 2. B. the HHI = 5,000 and the Rothschild index is 1. C. the HHI = 5,000 and the Rothschild index is 2. D. None of the answers are correct.