If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, this reduces its profit by
A) K - G.
B) K + G.
C) G - K.
D) G + H.
E) G.
A
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Microeconomics is concerned with
A. the aggregate or total levels of income, employment, and output. B. a detailed examination of specific economic units that make up the economic system. C. the establishing of an overall view of the operation of the aggregate economic system. D. how government debt affects aggregate economic activity.
The Federal Trade Commission (FTC) Act
A) prohibited charging buyers different prices if the result would reduce competition. B) gave the FTC full power to regulate mergers. C) closed the loopholes in the Sherman and Clayton Acts. D) divided authority to police mergers between the FTC and the Department of Justice.
Aneta has owned an Italian sports car for several years and now she wants to sell it. She paid $8,500 for it in 1993 and she has just sold it for $39,000 in 2015 . How is this sale included in the GDP for 2015?
a. $8,500 is included in 2015 GDP b. $39,000 is included in 2015 GDP c. The increase in value of $10,500 is included in 2015 GDP d. It is not included in 2015 GDP
Economic growth in Lillian’s country has been very slow. Which of the following offers the most likely explanation for this?
a. The population is increasing rapidly. b. The standard of living is low. c. Too much of the nation’s resources are being invested in technology. d. People are saving too much of their income instead of consuming.