If in some year nominal GDP was $20 billion and the GDP deflator was 50, what was real GDP?
a. $2.5 billion.
b. $10 billion.
c. $40 billion.
d. $100 billion.
c
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Which of the following expenditures associated with the production of a new high-performance SUV will be directly included in GDP?
A) the sale of bonds to finance the construction of the assembly plant B) the purchase of used welding robots to assemble to vehicles C) the purchase of new tires to be installed on the new vehicles D) the purchase of new machine tools to manufacture the engines
Assume that a manufacturer of new handheld computer makes a sales pitch to a retailer in which he is willing to sell 5,000 at $10, 7,000 for $8, 9,000 for $7
But any orders above that amount will start costing the retailer more money on a per-unit basis. The president of the retailer asks why he can't get a discount if he orders more. Can you provide an answer that would help this president understand this apparent paradox?
If you fall short of a certain minimum standard of living, you are poor; once you pass this standard, you are no longer poor. This refers to the ____ definition of poverty
a. average b. absolute c. relative d. threshold
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost.
If the producers of Good X form a cartel and set a monopoly price for the output, the price per unit would be ________ and the cartel profits (before subtracting any fixed costs) would be
A. $1,000; $40 billion. B. $500; $10 billion. C. $600; $90 billion. D. $1,000; $60 billion.