When equilibrium GDP falls below potential GDP, an inflationary gap exists.
Answer the following statement true (T) or false (F)
False
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The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is
A) a political statement. B) a positive statement. C) a normative statement. D) a scientific statement.
Entry of new firms into a perfectly competitive market lowers the profits of the existing firms
Indicate whether the statement is true or false
A worker's contribution to the firm's revenue is measured directly by the worker's: a. value of marginal product
b. marginal product multiplied by his/her wage. c. marginal product minus his/her wage. d. contribution to total output.
Two firms compete as a Stackelberg duopoly. The demand they face is P = 100 ? 3Q. The cost function for each firm is C(Q) = 4Q. The outputs of the two firms are:
A. QL = 16; QF = 8. B. QL = 12; QF = 8. C. QL = 24; QF = 12. D. QL = 20; QF = 15.