If a firm is willing to supply the 1,000th unit of a good at a price of $23 or more, we know that $23 is the
A) highest price the seller hopes to realize for this output.
B) minimum price the seller must receive to produce this unit.
C) average price of all the prices the seller could charge.
D) price that sets the marginal benefit equal to the price.
E) only price for which the seller is willing to sell this unit of the good.
B
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Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false?
A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases. B) If the individual consumes more pizzas, the amount of movies consumed must fall if the consumer is to stay on the same indifference curve. C) The indifference curve will be convex to the origin, that is, bowed in toward the origin. D) If the consumer purchases more of movies and pizzas, total utility will increase, but the consumer will be on a new indifference curve that is farther from the origin than the original indifference curve.
If the consumer price index (CPI) at the end of year one was 100 and was 108 at the end of year two, the inflation rate during year two was
a. zero; the CPI of 100 indicates that prices were stable. b. 8 percent. c. 5 percent. d. 108 percent.
Some economists argue that the spending multiplier is actually less than 1. If the spending multiplier is 0.8, then a $200 billion increase in government spending will increase GDP by
A. $250 billion. B. $200 billion. C. $160 billion. D. $40 billion.
If the CPI in period 1 is 125 and the CPI in period 2 is 150, then the rate of inflation between period 1 and period 2 is
A. 20%. B. 25%. C. 30%. D. 50%.