Exhibit 10-6 Aggregate supply curve
In Exhibit 10-6, where the GDP = $1,200 billion,
A. everyone willing to work at the current wage is employed.
B. the economy has reached full employment.
C. GDP can increase to $1,100 billion without triggering an increase in the price level.
D. no further increases in the price level can generate more real GDP.
Answer: A
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"When electric utilities are regulated using an average cost pricing rule, they will earn zero economic profit." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
If price elasticity of demand is -0.5,
a. a 1% decrease in quantity demanded leads to a 0.5% decrease in price b. a 1% decrease in price leads to a 0.5% increase in quantity demanded c. a 50% decrease in price leads to a 1% increase in quantity demanded d. a 50% decrease in price leads to a 100% increase in quantity demanded e. demand is elastic
Utopia would be a debtor nation
a. if consumers in other countries bought goods and services from Utopia b. only if it had a deficit in its current account c. only if it had a deficit in its balance of goods and services d. if it had a deficit in its balance of trade e. if it had a deficit after adding together the balances in both its current account and its capital account
Income mobility is:
A. how much income is stored in offshore banks. B. the ability to improve one's economic circumstances over time. C. how likely the income associated with each job in the country will change in relative terms. D. how likely the income associated with each job in the country will increase over time.