Real GDP measures ________.

A. base year output at current prices
B. current output at current prices
C. base year output at current exchange rates
D. current output at base year prices


Answer: D

Economics

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Which of the following is the correct statement of the marginal rule for optimal input proportions? The input proportion is optimal when

A. PA= PB. B. MPPA= MPPB. C. PA×MPPA= PB×MPPB. D. PA/PB= MPPA/MPPB.

Economics

In 1997, the Justice Department brought a lawsuit against ________ because its growing market power had enabled the company to crush competitors, eliminate competition and innovation.

A. Microsoft B. Walt Disney C. Exxon D. Standard Oil

Economics

Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:

A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.

Economics

A monopoly producing a chip at a marginal cost of $6 per unit faces a demand elasticity of ?2.5. Which price should it charge to optimize its profits?

A. $10 per unit B. $6 per unit C. $8 per unit D. $12 per unit

Economics