If the supply of a good is perfectly inelastic, the price elasticity of supply will equal
A) positive infinity.
B) one.
C) zero.
D) none of the above.
C
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The income approach to measuring GDP is based on summing
A) the values of final goods, intermediate goods and services, used goods, and financial assets. B) the production of each industry. C) consumption expenditure, investment, government expenditures on goods and services, and net exports of goods and services. D) wages, interest, rent, and profits. E) consumption expenditure and wages.
In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
a. The price level and real GDP will both rise. b. The price level will not change, but real GDP will increase. c. The price level will rise, but real GDP will not change. d. Both the price level and real GDP will not change.
Specialization in production
A. Makes a country weak. B. Reduces the standard of living. C. Increases output. D. Decreases total world output.
A perfectly competitive ebook publishing firm currently sells its ebook at the market price of $6. Its average total cost is $5.50. In this case:
a. since average total cost is less than the price, the firm will shut down. b. the firm has positive economic profits. c. the firm is losing money but will continue to operate. d. the firm has zero economic profits.