Assume the table has recorded the total output and prices of the only two goods produced. Looking at the changes in real GDP and nominal GDP from 2000 to 2001, we can conclude that because:
A. real and nominal GDP increased at the same rate, there was no change in prices, only output.
B. nominal GDP rose more than real GDP, both prices and output must have increased.
C. real GDP rose more than nominal GDP, output must have increased more than prices.
D. real and nominal GDP increased at the same rate, there was no change in output, only prices.
A. real and nominal GDP increased at the same rate, there was no change in prices, only output.
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The people who support restricted international trade say that ______
A. protection saves jobs, in both the U.S. and foreign economies B. U.S. firms won't be able to compete with low-wage foreign labor if trade is free C. outsourcing sends jobs abroad, which brings diversification and makes our economy more stable D. protection is needed to enable U.S. firms to produce the things at which they have a comparative advantage
The Celler-Kefauver Act of 1950 amended the:
a. Sherman Antitrust Act. b. Clayton Act. c. Federal Trade Commission Act. d. Robinson-Patman Act.
Which of the following changes in taxes would lead to the smallest increase in consumption?
a. a $20,000 decrease in taxes, if MPC equals 0.5 b. a $12,000 decrease in taxes, if MPC equals 0.75 c. a $15,000 decrease in taxes, if MPC equals 0.6 d. a $30,000 decrease in taxes, if MPC equals 0.25
Under perfect competition, the market mechanism, without any government regulation, is capable of
a. allocating resources efficiently. b. solving equity problems. c. making the average cost of labor equal to the average cost of all commodities. d. making more income available to the poor.