Refer to the information provided in Table 21.10 below to answer the question(s) that follow. Table 21.10
Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is
A. $120.
B. $122.
C. $132.
D. $140.
Answer: B
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When there is excess demand for a product in a market,
a. price will tend to fall. b. price must be below the equilibrium price. c. price must be above the equilibrium price. d. producers will reduce output and sales will fall.
If the firms in a competitive price-searcher market are earning zero economic profit, this indicates that the
a. market is not in long-run equilibrium. b. firms are earning the normal rate of return. c. firms are performing worse than the firms in other markets. d. firms are performing better than firms in other markets.
When the rate of cyclical unemployment is zero, the:
A. natural rate of unemployment must also be zero. B. rate of frictional unemployment must be negative. C. economy must have entered a recessionary stage. D. economy is considered to be at full employment.
If demand is elastic, then when price rises, total revenue will decrease.
Answer the following statement true (T) or false (F)