In an economy experiencing a persistently falling price level:
a)potential GDP will necessarily exceed actual GDP.
b) changes in nominal GDP may either overstate or understate changes in real GDP.
c) changes in nominal GDP understate changes in real GDP.
d)changes in nominal GDP overstate changes in real GDP.
c) changes in nominal GDP understate changes in real GDP.
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The change spawned by the microchip and the Internet which has also enhanced the acquisition, analysis, and transmission of information is known as _____
A) the Information Revolution. B) the Innovation Revolution. C) the Manufacturing Revolution. D) the Industrial Revolution. E) the Agricultural Revolution.
Chipotle offered free burritos to celebrate teachers. What type of price discrimination does this demonstrate?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.
Which of the following institutions form the private sector in an economy?
a. Only households b. Households and the government c. Households, businesses, and foreign firms d. Households and businesses only e. Foreign investors and foreign governments
The target price approach to the farm problem distorted the market less than the support price approach because the target price
a. does not allow the market to clear, whereas the support price does b. increases farm incomes by creating a shortage, whereas the support price creates a surplus c. permits the market to clear, whereas the support price does not d. is set equal to the equilibrium price e. is independent of market conditions and thus gives farmers a steady income