If an increase in income leads to an increase in the demand for sushi, then sushi is
A) a normal good. B) a complement. C) a neutral good. D) a necessity.
A
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Rita cooked a meal for her family which is worth $100 in the nearest eatery. What will be the impact of this activity on the calculation of GDP? Explain your answer
What will be an ideal response?
Based on the figure above, short-run equilibrium occurs at the price level of
A) 120 and real GDP of $5 trillion. B) 130 and real GDP of $10 trillion. C) 140 and real GDP of $15 trillion. D) 130 and real GDP of $15 trillion.
Because a bank earns money when it makes a loan to a borrower it:
A. has an incentive to loan out as much of each deposit as it can. B. has an incentive to borrow from the government as much as it can to loan out. C. needs to loan out more than it takes in through deposits to make money. D. has more of an incentive to loan out money than take money in through deposits.
The average consumer at a firm with market power has an inverse demand function of P = 10 ? Q. The firm's cost function is C = 2Q. If the firm engages in optimal two-part pricing, it will earn profits of:
A. $32. B. $2. C. $64. D. None of the answers are correct.