Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that:
A. real GDP per capita must be $500.
B. the price-level index must be greater than 100.
C. nominal GDP must be $500.
D. the number of worker-hours must be 500.
D. the number of worker-hours must be 500.
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Refer to the table above. Country A has an absolute advantage in
A) beer. B) wine. C) both beer and wine. D) neither beer nor wine.
Economists use the term ______ to refer to the ability of a single person (or a small group) to have a substantial influence on market prices
Fill in the blank(s) with correct word
A recessionary gap occurs when
A. the price level is too low. B. equilibrium real GDP is greater than potential GDP. C. equilibrium real GDP falls short of potential GDP. D. the government does not stimulate investment spending.
If the supply curve is perfectly elastic, the burden of a tax on suppliers is borne:
A. entirely by the consumers. B. entirely by the suppliers. C. partly by the suppliers and mostly by the consumers if the demand curve is elastic. D. mostly by the suppliers and partly by the consumers if the demand curve is inelastic.