If the market price falls below the bottom of the firm's ATC curve:
A. the market price must be lower than the firm's AVC.
B. Total revenue must be higher than total cost.
C. there is no level of output at which the firm can make a profit.
D. the firm is earning profits.
Answer: C
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Tariffs lead to
A. the expansion of relatively efficient industries. B. an under allocation of resources to relatively efficient industries. C. an increase in the foreign demand for domestically produced goods. D. an under allocation of resources to relatively inefficient industries.
If imports are $100 million more than exports, government spending is $500 million, consumer expenditures are $900 million, and investment spending is $600 million, then GDP is
A. $1.9 billion. B. $2.0 billion. C. $1.8 billion. D. $2.1 billion.
An excess quantity of money demanded will lead to a rise in
A) bond prices. B) income. C) the interest rate. D) investment.
A nation's population was 250 million last year and is 255 million this year. If its real GDP was $8.5 trillion last year and is $8.8 trillion this year, what is its growth rate of real GDP per person?
What will be an ideal response?