A positive income elasticity value indicates that the good is a normal good.
Answer the following statement true (T) or false (F)
True
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Use the figure below to answer the following question.
If the output level increases from Q2 to Q3, then the marginal cost of the product
A. increases while its marginal benefit decreases and the market no longer achieves allocative efficiency. B. stays constant while its marginal benefit increases and the market no longer achieves allocative efficiency. C. increases while its marginal benefit decreases and the market achieves allocative efficiency. D. becomes closer to its marginal benefit and the market achieves allocative efficiency.
Suppose China Airlines wants to purchase a French Airbus. The price of the Airbus is 95 million Euro. If the exchange rate is 1 euro per 9 yuan, the price of this airplane to China Airlines is
A) 855 million yuan. B) 85.5 million yuan. C) 11.11 million yuan. D) 10.6 million yuan.
If real GDP in a year was $4,031 billion and the price index was 124, then nominal GDP in that year was approximately:
a. $5,121 billion b. $4,445 billion c. $5,233 billion d. $4,998 billion
The difference between the nominal rate of interest and the real rate of interest is
A) handling charges. B) government regulatory charges. C) administrative overhead charges. D) the anticipated rate of inflation.