Changes in nominal GDP always reflect changes in real output
a. True
b. False
Indicate whether the statement is true or false
False
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The “law” of diminishing returns asserts that marginal returns will ultimately diminish when the quantity of one input is increased.
Answer the following statement true (T) or false (F)
Which of the following firms could raise prices and expect an increase in revenues?
(A) A firm whose product has an elasticity of 3.1. (B) A firm whose product has an elasticity of 1. (C) A firm whose product has an elasticity of 0.31. (D) All firms regardless of the elasticity of their products.
The figure below shows the market for shoes in a small importing country. Dd and Sd are the domestic demand and supply curves of shoes, respectively.
Following the imposition of a tariff, the domestic consumer surplus ________ by the area
A. decreases; d. B. increases; (b + d). C. decreases; (a + b + c +d). D. increases; (D0 - D1).
Nations with low levels of GDP per capita may converge to richer nations if:
A. nations with high levels of income experience a continuously increasing growth rate. B. nations with lower levels of income grow more quickly than those with higher levels of income. C. nations with lower levels of income spend less on investment. D. nations with lower levels of income grow more slowly than those with higher levels of income.