If a subsidy (going to producers) on a good is eliminated, this would
A. move its supply curve to the right.
B. cause a movement along the supply curve to a (lower price, lower quantity) point.
C. move its supply curve to the left.
D. cause a movement along the supply curve to a (higher price, higher quantity) point.
Answer: C
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A nation's real GDP was $250 billion in 2014 and $265 billion in 2015. Its population was 120 million in 2014 and 125 million in 2015. What is its real GDP growth rate in 2015?
A. 1.1% B. 5.7% C. 6.0% D. 15.0%
What is measured on the vertical axis of the aggregate demand graph?
A) unemployment B) nominal income C) the price level D) real GDP per year
In the production of goods and services, trade-offs exist because
A) not all production is efficient. B) society has only a limited amount of productive resources. C) we have abundant resources to choose from. D) human wants and needs are limited at a particular point in time.
Tying the salaries of top managers to the firm's stock price or to the profitability of the firm allows a firm's board of directors to
A) increase asymmetric information. B) reduce the principal-agent problem. C) eliminate moral hazard. D) avoid disclosing financial statements to investors.