Refer to the above table. The equilibrium real GDP is
A) $14 billion. B) $12 billion. C) $15 billion. D) $13 billion.
A
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Quality of life indexes produced in popular magazines often place a heavy emphasis on the cost of housing in different cities -- with a lower housing cost entering the index as a positive feature of the city. Why might such quality of life indeces be misleading?
What will be an ideal response?
Which of the following can increase the number of pizzas a seller is willing to sell at a given price?
A. The amount of subsidies that pizza makers receive from the government decreases. B. A new technology is developed that allows producers to make the same sized pizza using less cheese and dough. C. The cost of inputs such as pepperoni and cheese goes up. D. The number of workers working in the pizza factory decreases.
Hours of OperationMarginal Cost16212318424530636742
Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that Krystal's marginal benefit of staying open per hour is $18. If she is following the marginal principle, how many hours should Krystal stay open?
A. 3 hours B. 4 hours C. 6 hours D. 7 hours
If production of an item results in negative external costs, then
A. the market quantity is too low from society's point of view. B. the market price is below the socially preferred price that reflects the external costs. C. the market price is above the socially preferred price that reflects the external costs. D. market forces will always correct the problem.