Use the following graph with data for a private closed economy to answer the next question.
At the $150 billion level of real GDP, aggregate expenditures are
A. more than real GDP, so real GDP will fall.
B. less than real GDP, so real GDP will rise.
C. more than real GDP, so real GDP will rise.
D. equal to real GDP, so there will be no change in real GDP.
Answer: C
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Price cap regulation
A) does not provide incentives to firms to minimize their costs because firms cannot change prices. B) sets the maximum price these firms can charge. C) gives firms the incentive to exaggerate their costs. D) Both answers A and C are correct. E) Both answers A and B are correct.
What does the Coase Theorem predict?
What will be an ideal response?
Our measurement of output per worker is called:
A. productivity. B. production growth rate. C. nominal output. D. None of these is true.
Which of the following is the best example of a variable cost?
a. monthly wage payments for hired labor b. annual property tax payments for a building c. monthly rent payments for a warehouse d. annual insurance payments for a warehouse