Suppose that GDP was $200 billion in year 1 and that all other components of expenditures remained the same in year 2 except that business inventories increased by $10 billion. GDP in year 2 is:
A. $180 billion.
B. $190 billion.
C. $200 billion.
D. $210 billion.
D. $210 billion.
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If the market clearing price of computer tablets falls from $400 to $300, and the market clearing output increases from 5 million to 7 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
Price discrimination is never perfect because:
A) it increases consumer surplus. B) it is regulated by the government. C) it lowers profits of producers to an extent. D) it is impossible to know consumers' willingness to pay.
Say's law
A) explains the role of money. B) deals with interest rates, employment, and production. C) was accepted and praised by John Maynard Keynes. D) None of the above.
Which of the following conditions would increase the likelihood of successful collusion among American automobile producers?
a. vigorous enforcement of antitrust laws b. strong quality competition that makes it difficult to monitor price cuts by rival firms c. imposition of tariffs or quotas on imported automobiles d. The market demand for automobiles fluctuates substantially.