If the price index last year was 1.0 and today it is 1.4, what is the inflation rate over this period?
A) -4%
B) 1.4%
C) 4%
D) 40%
D
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If both the supply and demand curves shift simultaneously, we can always predict what will happen to
A) both the price and the quantity. B) either the price or the quantity, but not both. C) only the price. D) only the quantity. E) neither the price nor the quantity.
Suppose the marginal product of the second worker hired by a firm is 3, and the price of the last unit produced is $7 . Which of the following is true of the marginal revenue product of the second worker?
a. It must equal $21. b. It must be less than or equal to $21. c. It must be greater than or equal to $21. d. It equals $21 only if the firm is a price searcher (e.g., monopoly). e. We can conclude nothing about marginal revenue product.
If a firm can change market prices by altering its output then it:
A.) Has market power. B.) Is a price taker. C.) Faces a horizontal demand curve. D.) Is a competitive firm.
A consumer can afford any combinations of two goods on or below the budget line.
Answer the following statement true (T) or false (F)