Suppose an individual buys a new CD of her favorite musical artist. This purchase has taken place in the
A) labor markets. B) factor markets. C) resource markets. D) product markets.
D
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If the nominal interest rate is 8.25% and inflation rate is 3%, the real interest rate is ________
A) 5.25% B) 2.75% C) 1.25% D) 11.25%
If the marginal propensity to consume (MPC) is 0.75 and government purchases increase by $200 billion, then
A) equilibrium real Gross Domestic Product (GDP) will increase by $50 billion. B) the effect on equilibrium real Gross Domestic Product (GDP) cannot be determined from the given information. C) equilibrium real Gross Domestic Product (GDP) will increase by $800 billion. D) equilibrium real Gross Domestic Product (GDP) will increase by $200 billion.
Suppose a budget line is drawn between pizza, on the horizontal axis, and tacos, on the vertical axis. How does a change in the price of a pizza affect the budget line?
What will be an ideal response?
Why does a monopoly cause a deadweight loss?
A) because it stops producing output at a point where price is above marginal cost B) because it appropriates a portion of consumer surplus for itself C) because it increases producer surplus at the expense of consumer surplus D) because it does not produce some output for which demand exceeds supply