Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound. For 2009,
a. nominal GDP is $400, real GDP is $500, and the GDP deflator is 80.
b. nominal GDP is $400, real GDP is $500, and the GDP deflator is 125.
c. nominal GDP is $500, real GDP is $400, and the GDP deflator is 80.
d. nominal GDP is $500, real GDP is $400, and the GDP deflator is 125.
d
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General equilibrium considerations lead to the realization that import-substituting policies have the effect of
A) discouraging exports. B) encouraging exports. C) encouraging an efficient use of a country's resources. D) generating large tariff revenues for the government. E) creating competitive manufacturing sectors.
A perfectly competitive firm's supply curve is the portion of the:
a. TC curve that lies above the TR curve. b. MR curve that lies above the MC curve. c. AFC curve that lies above the AR curve. d. AVC curve that lies above the ATC curve. e. MC curve that lies above the AVC curve.
An increase in the budget deficit causes domestic interest rates
a. and net capital outflow to rise. b. to rise and net capital outflow to fall. c. to fall and net capital outflow to rise. d. and net capital outflow to fall.
A vertical merger involves a combining of one or more firms:
A. as the result of one firm purchasing the assets of the other. B. that are operating in entirely different industries. C. operating at different stages of the production process in a particular industry. D. operating at the same stage of the production process.