Suppose that a consumer is at an optimum consuming A and B. If the price of A falls, then to get to a new equilibrium the consumer must
A) purchase less A and more B.
B) purchase less B and less A.
C) purchase more A.
D) purchase more B.
Answer: C
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The cost of an action is
A) indeterminate from a strictly economic point of view. B) the value of the next-best alternative opportunity sacrificed C) the cost to the consumer plus the cost to the producer. D) the number of consumers needed to set the price. E) measured only in money.
Which of the following will most likely cause an increase (shift to the right) in both the long-run and short-run aggregate supply curves?
a. an increase in the national debt b. an increase in income tax rates c. a decrease in the economy's rate of investment and capital formation d. a technological improvement in robotics that substantially increases labor productivity
According to the hypothetical economy in Figure 5.1, between 1960 and 1970 real GDP declined but nominal GDP continued to rise. The increase in nominal GDP was due to
A. An increase in the standard of living. B. A decrease in the price level. C. An increase in the quantity of output produced. D. An increase in the price level greater than the decrease in output, causing the nominal dollar value of output produced to increase.
Which of the following is included in Germany's GDP?
i. BMWs produced in a German-owned factory in South Carolina ii. the value of the stocks sold on the German stock exchange, the Frankfurt Stock Exchange iii. china produced by the English-owned Wedgewood Company at a factory in Berlin, Germany A) i and iii B) ii only C) iii only D) i and ii E) None of the above answers is correct.