Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has:
A. Increased by $25 per person
B. Decreased by $25 per person
C. Increased by $533 per person
D. Decreased by $533 per person
B. Decreased by $25 per person
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We would expect a decrease in taxes to cause a movement down along the short-run Phillips Curve.
Answer the following statement true (T) or false (F)
The SRAS would be vertical: a. if there was no profit effect
b. if there was no misperception effect. c. if there was no profit effect or misperception effect. d. under no conceivable set of circumstances.
Which statement is true?
A. As rents rise more marginal land is used. B. As rents rise less marginal land is used. C. Land is basically free. We pay rent for the buildings that are situated on the land. D. None of the statements are true.
The demand and supply equations for the peach market are:
Demand: P = 24 - 0.5Q Supply: P = -6 + 2.5Q where P = price per bushel, and Q = quantity (in thousands). a. Calculate the equilibrium price and quantity. b. Suppose the government guaranteed producers a price of $24 per bushel. What would be the effect on quantity supplied? Provide a numerical value. c. By how much would the $24 price change the quantity of peaches demanded? Provide a numerical value. d. Would there be a shortage or surplus of peaches? e. What is the size of this shortage or surplus? Provide a numerical value.