Real GDP

A) fluctuates from year to year but is always below potential GDP.
B) fluctuates around potential GDP.
C) grows at a constant 3 to 4 percent per year.
D) can be called potential GDP when it is adjusted for price changes.


B

Economics

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The accountant for Muzhi's Sushi claims that Muzhi has accomplished "technological efficiency." This means that Muzhi's Sushi

A) produces a given output using the least inputs. B) produces a given output at the lowest cost. C) has an economic profit greater than a normal profit. D) has a normal profit greater than an economic profit.

Economics

Assume firm X is one of the three largest firms in an oligopolistic industry. Firm X is currently considering a vertical merger with another firm that is the sole supplier of an input used by all of the firms that compete with firm X

If the merger goes through, firm X would be able to operate much like: A) a perfectly competitive firm. B) a monopolistically competitive firm. C) an oligopolist. D) a monopolist.

Economics

A small open economy reduces its desired saving. This causes the world real interest rate to ________ and the country's current account balance to ________

A) fall; fall B) remain unchanged; rise C) fall; rise D) remain unchanged; fall

Economics

If a binding price ceiling were placed in the market in the graph shown:



A. quantity demanded would exceed quantity supplied.
B. quantity supplied would exceed quantity demanded.
C. the demand curve would have to shift.
D. the supply curve would have to shift.

Economics