If total output increases from $100 billion to $200 billion as population increases from 100 million to 150 million, then output per person:
A. remains constant.
B. decreases.
C. increases, but by less than 100 percent.
D. doubles.
Answer: C
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Which of the following is TRUE?
A) When a market price allocates resources, everyone who is able to pay the price gets the resource. B) A command system works well when the lines of authority and responsibility are clear. C) When the government decides how to allocate tax dollars among competing uses, resources are allocated by command. D) When a manager offers everyone in the company the opportunity to win a prize, resources are allocated by a market price.
If the market price is $40 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
A) $8. B) $20. C) $40. D) $200.
What are the four categories of aggregate expenditure?
What will be an ideal response?
Which of the following policies would most likely increase the money supply?
a. Selling government bonds b. Raising the discount rate c. Lowering tax rates d. Lowering the required reserve ratio e. Decreasing the prime lending rate