The quantity demanded of Pepsi has decreased. The best explanation for this is that
A. the price of Pepsi has increased.
B. the price of Coca-Cola has increased.
C. Pepsi consumers had an increase in income.
D. Pepsi's advertising is not as effective as in the past.
A. the price of Pepsi has increased.
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Suppose Ford Motor Company produced and sold $50 million 2015 model-year pickup trucks during the last half of 2014. How would this affect GPD?
A) 2014 GDP would remain unchanged, and 2015 GDP would rise by $50 million. B) 2014 GDP would rise by $50 million, and 2015 GDP would not be affected. C) Both 2014 and 2015 GDP would rise by $25 million. D) Trick question: 2015 model-year vehicles can't be produced and sold in 2014.
Refer to Figure 2-17. One segment of the circular flow diagram in the figure shows the flow of funds from economic agents E to market F. Who are economic agents E and what is market F?
A) E = households; F = product markets B) E = households ; F = factor markets C) E = firms; F = product markets D) none of the above
An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.90, result in an increase in real GDP by:
a. $1,000. b. $9,000. c. $900. d. $190. e. inadequate information is given.
Exhibit 12-3 Unemployment categories CategoryWorkers Frictional unemployment250 Structural unemployment350 Cyclical unemployment600 Discouraged workers400 Underemployment450 According to data in Exhibit 12-3 and assuming the total number people working is 8,400, the civilian labor force is
A. 7,550. B. 9,600. C. 8,400. D. 8,800.