The payments you make on your automobile loan are given in terms of dollars. As prices rise you notice you give up fewer goods to make your payments
a. The dollar amount you pay is a nominal value. The number of goods you give up is a real value.
b. The dollar amount you pay is a real value. The number of goods you give up is a nominal value.
c. Both the dollar amount you pay and the goods you give up are nominal values.
d. Both the dollar amount you pay and the goods you give up are real values.
a
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Assuming the demand curve is downward sloping, as price increases, the price elasticity of demand for a good (in absolute value) and marginal revenue:
A) increase. B) stay the same. C) decrease. D) cannot be determined.
Answer the following statements true (T) or false (F)
1) As a manager, one of your responsibilities is to avoid tacit collusion. 2) If a firm receives treble damages, they are being paid a monetary reward for reporting cartel activity. 3) All else equal, it is more profitable to produce a differentiated product rather than an identical product made by a rival firm. 4) As a manager of a firm that produces an identical product as your rival, it is economically profitable to compete on price. 5) As a manager in an oligopolistic market, it is critical to take into consideration your rivals' best responses to your decisions.
Marginal, average, and total figures are unrelated
a. True b. False Indicate whether the statement is true or false
A nation's standard of living, as measured by real GDP per person, increases:
A. only if the share of population employed increases. B. if either average labor productivity and/or the share of population employed increase. C. only if both average labor productivity and the share of population employed increase. D. only if average labor productivity increases.