An increase in the price of an input to a perfectly competitive industry will:
a. increase price and reduce the number of firms
b. increase price and increase the number of firms.
c. increase price and have an ambiguous effect on the number of firms.
d. reduce the number of firms and have an ambiguous effect on price.
c
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Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242. Assume that inflation is ten percent per year. How fast did the economy grow between these two years?
A) 10 percent B) 12 percent C) 21 percent D) 42 percent
Convenience stores with gas stations tend to sell an essentially identical variety of products and services. Yet this is generally considered to be a monopolistically competitive industry selling differentiated products
How can this be considered a differentiated product?
Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. An economist would calculate the total profit for one photo frame to be
a. $10. b. $15. c. $20. d. $25.
Which scenario shows how money functions as a means of deferred payment?
a. Lorelai knows that a peach costs $0.50 and a latte costs $5, so a latte is equal to 10 peaches. b. Darius puts money into a savings account and uses it to pay for a vacation at the end of the year. c. Julio gives Patrick $5 and Patrick gives Julio a sandwich in exchange. d. Every month, Candace sends a check for $300 to the company that services her student loans.