Which of the following could cause nominal GDP to decrease, but real GDP to increase?
A) The price level rises and the quantity of final goods and services produced rises.
B) The price level falls and the quantity of final goods and services produced falls.
C) The price level rises and the quantity of final goods and services produced falls.
D) The price level falls and the quantity of final goods and services produced rises.
D
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In any game, all that is necessary to rule out an outcome is that
a. both players would want to change. b. one player would want to change. c. one player is worse off than with some other strategy. d. both players are worse off than with some other strategy.
In an economist’s view, a cartel usually offers to society
A. all the cost benefits of large-scale production and none of the allocative inefficiencies of monopoly. B. all the cost benefits of large-scale production and all of the allocative inefficiencies of monopoly. C. none of the cost benefits of large-scale production and none of the allocative inefficiencies of monopoly. D. none of the cost benefits of large-scale production and all of the allocative inefficiencies of monopoly.
When a firm hires labor up to the point where the wage is equal to the value of the marginal product of labor, it is
a. minimizing labor costs. b. guaranteeing that labor costs do not exceed fixed costs. c. maximizing the number of workers it can hire and still experience a positive profit. d. maximizing profit.
Short-run fluctuation in economic activity
What will be an ideal response?