If the economy spends 80 percent of any increase in real GDP, then an increase in investment of $1 billion would result ultimately in an increase in real GDP of:
a. $0.
b. $0.8 billion.
c. $1.0 billion.
d. $5.0 billion.
d
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Refer to Figure 12-5. If the market price is $20, what is the average profit at the profit-maximizing quantity?
A) $5 B) $6 C) $9 D) $20
Spending a lot on advertising:
A. can act as a credible signal to consumers of high-quality products. B. can act as a credible signal to producers to create high quality substitutes. C. does not serve as a credible signal to consumers, since any producer can do it. D. can act as a credible signal to consumers of low-quality products.
The band Coldplay's funding of 10,000 mango trees in India to help sop up emissions related to the release of their CD, A Rush of Blood to the Head, is an example of fixed-production technology
a. True b. False
If the demand for automobiles increases, which of the following would also experience an increase in demand?
a. automobile workers b. skateboards c. bicycle manufacturers d. ice cream e. financial analysts