If you are told that in a given year the real growth rate is 7% with inflation and population growth rates of 2% and 1.2% respectively, then nominal growth rate of GDP per capita is:
A. 3.8%.
B. 5.0 %.
C. 5.8%.
D. 7.0 %.
D. 7.0 %.
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Which of the following economic systems requires some form of competition to better coordinate the plans and projects of households and enterprises?
A) capitalism. B) socialism. C) fascism. D) totalitarianism E) all of the above.
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
If the market price of grills falls from $375 to $330, given the scenario described, which of the following can be said? A. Butch will join the market, but receive no consumer surplus. B. Butch and Collin will join the market, and together will receive $30 in consumer surplus. C. Abe will experience a decrease in consumer surplus of $45. D. Abe will experience an increase in consumer surplus of $45.
Which of the following is characteristic of oligopoly firms, but not of monopolistically competitive firms?
a. firms seek to maximize profits b. firms face downward-sloping demand curves c. the pricing behavior of one firm has a significant effect on the sales of other firms d. firms have at least some ability to influence price
In a nation's balance of payments, which one of the following items is always recorded as a positive entry?
A. Changes in foreign currency reserves B. Purchases by foreign travelers visiting the country C. Imports of goods and services D. Military foreign aid supplied to allied nations