Which of the following changes shifts the AD curve up and to the right?
A) A rise in the nominal money supply
B) An increase in income taxes
C) An increase in the risk on nonmonetary assets
D) A decrease in the future marginal productivity of capital
A
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If a country had a nominal GDP of $753 million, and the GDP deflator was 110, what is the real GDP?
a. $685 million b. $828 million c. $836 million d. $863 million
A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has a sunk fixed cost of $2,000 per week. Its marginal cost is MC = 3Q2. What is the profit-maximizing output if the price is P = $192?
A. 0 B. 6 C. 8 D. 10
When natural monopoly is present in an industry, the per-unit costs of production will be
a. lowest when there are a large number of producers in the industry. b. lowest when a single firm generates the entire output of the industry. c. lower for small firms than for large firms. d. minimized at the output that maximizes the industry's profitability.
Why do firms engage in price discrimination?
A) to decrease cost B) to increase profits C) to increase consumer surplus D) to prohibit the resale of their products