In a two-period model with production, an anticipated future increase in domestic total factor productivity
A) increases domestic output and increases the current account surplus.
B) increases domestic output and decreases the current account surplus.
C) has no effect on domestic output and increases the current account surplus.
D) has no effect on domestic output and decreases the current account surplus.
D
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Which of the following statements about monopoly is most accurate?
a. The monopolist has no incentive to produce efficiently. b. Regardless of what is produced, the monopolist will use too many resources. c. A monopolist has no incentive to keep costs down. d. The monopolist "understocks" the market and charges too high a price.
Table 7.2GDP for Newland?Nominal GDP(in billions of dollars)GDP deflatorCPI2001$5,900120.1128.320026,300123.0131.720036,800126.3136.5Based on Table 7.2, the rate of inflation between 2002 and 2003, using the GDP deflator, was
A. 2.68 percent. B. 1.62 percent. C. 4.91 percent. D. None of the other choices.
The Bureau of Economic Analysis releases last quarter's growth rate in real GDP. This release would most likely have been written by what kind of an economist?
A. A labor economist B. A microeconomist C. A monetary economist D. A macroeconomist
Assume the demand function for scooters is given by QD = 20,000 - 10P + 0.2I, where P = price of a scooter, and I = average income of consumers. Also, assume the supply function of scooters is given by QS = 20P. If the market for scooters is perfectly competitive, and the average income of consumers is $20,000, what are the equilibrium price and quantity in this market?
A. The equilibrium price is $16,000, and 800 scooters are traded. B. The equilibrium price is $800, and 16,000 scooters are traded. C. The equilibrium price is $800, and 32,000 scooters are traded. D. The equilibrium price is $1,600, and 32,000 scooters are traded.