Suppose the inverse market demand is given by P = 20 ? Q. If the incumbent continues to produce eight units of output, which of the following equations best summarizes the potential entrant's residual demand curve?
A. P = 8 ? Q
B. P = 12 ? Q
C. P = 12 ? 8Q
D. P = 20 ? 12Q
Answer: B
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Answer the next question using the following budget information for a hypothetical economy. All data are in billions of dollars. Also assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$800$825$4,000Year 28508504,200Year 39008754,350Year 49509004,500Year 51,0009254,600Assume that year 1 is the first year for this economy and year 5 is the current year. What is the public debt in this economy at year 5?
A. $75 billion B. $25 billion C. $925 billion D. $125 billion
Refer to Table 17.1. The labor force participation rate for this simple economy is
A) 25%. B) 40%. C) 50%. D) 60%.
Suppose a monopoly can sell 10 units of output for $21. In order to sell 11 units of output, the price must fall to $20. What is the marginal revenue of the 11th unit?
A) $41 B) $20 C) $10 D) $1 E) $220
The Green GDP:
A. tries to capture the environmental effects regular GDP doesn't. B. subtracts the environmental costs of production from the positive outputs normally counted in GDP. C. values negative externalities. D. All of these statements are true.