Suppose that GDP is equal to 1000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Private savings must equal
A) 150.
B) 200.
C) 250.
D) 300.
C
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If there is a permanent increase in demand for the product of a perfectly competitive industry, the process of transition to a new long-run equilibrium will include:
a. the entry of new firms. b. temporarily higher profits. c. both a and b. d. neither a nor b.
Which of the following will reduce the supply of motorcycles?
A. An increase in the population age 16 to 35, the primary consumers of motorcycles. B. An increase in taxes imposed on motorcycle producers. C. A technological improvement reducing the production costs of motorcycles. D. A government study that reveals motorcycle riders, on average, live 10 years longer than those who don't ride motorcycles.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 120 ? 6Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2. How much output should be produced in plant 1 in order to maximize profits?
A. 6 B. 12 C. 3 D. 9
The marginal product of labor (measured in units of output) for Relient Corp. is given by MPN = A(200 - N)where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0. What will be the demand for labor if the nominal wage is $30?
A. 185 B. 195 C. 170 D. 190