In a market economy, who or what determines who produces each good and how much is produce
A. the government
B. lawyers
C. lotteries
D. prices
Answer: D. prices
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The largest component of GDP is
A) gross private domestic investment. B) personal consumption expenditures. C) net exports of goods and services. D) government expenditure on goods and services.
The horizontal axis in a graph
A) measures time in a scatter diagram. B) measures the quality of a variable. C) is named the y-axis. D) is named the x-axis.
Given that energy is an input in production, the development of a cheaper source of energy will result in:
a. a lower price level and a lower amount of production. b. a higher price level and a higher amount of production. c. a lower amount of production at every price level. d. a higher amount of production at every price level. e. a lower profit at every price level.
At the time of Kelsey's 20 year high school reunion she was earning $50,000 and the CPI was 120. Now that it is time for her to attend her 30 year high school reunion, Kelsey's income has risen to $97,000 and the CPI is 230. At her 30 year reunion, can Kelsey rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?
A) Yes, Kelsey's real income rose during that 10 year period. B) No, Kelsey's real income fell during that 10 year period. C) No, Kelsey's real income remained constant during that 10 year period. D) It is impossible to determine what happened to Kelsey's real income.