A decrease in the price of domestically produced industrial robots will be reflected in
a. both the GDP deflator and the consumer price index.
b. neither the GDP deflator nor the consumer price index.
c. the GDP deflator but not in the consumer price index.
d. the consumer price index but not in the GDP deflator.
c
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What happens to the present value of $1 one year from now if the market rate of interest falls? Explain
What will be an ideal response?
A perfectly competitive firm has a random marginal cost with a 30 percent chance of a high marginal cost of $50 and a 70 percent chance of a low marginal cost of $40. What is the firm's expected marginal cost?
A) $48 B) $46 C) $43 D) $45
Why might the economy as a whole conform to the predictions of a model even if not all people are rational?
A. It won't; for the standard model to work, all people must be rational. B. The standard model doesn't assume rationality. C. People who are rational will profit from those who are not. D. People who are irrational will profit from those who are not.
A 10 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected assuming dynamic tax analysis?
A. The total revenue will be zero. B. The total revenue will be between $0 and $10,000. C. The total revenue will be $10,000. D. There is not enough information to determine what revenues will equal.