U.S. potential GDP is the value of the goods and services produced in the United States ________
A. in the reference base year
B. when the U.S. unemployment rate is zero
C. when the U.S. economy is at full employment
D. when the U.S. inflation rate is zero
C Answer C is correct because it is the definition of potential GDP.
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You earn $500 a month, currently have $200 in currency, $100 in your checking account, $2,000 in your savings accounts, $3,000 worth of illiquid assets and $1,000 of debt. You have
A) money = $300, annual income = $6,000, and wealth = $5,000. B) money = $2,300, annual income = $6,000, and wealth = $5,000. C) money = $300, annual income = $6,000, and wealth = $4,300. D) money = $200, annual income = $500, and wealth = $4,300.
Firms look for dominated strategies in order to gain the upper hand on competitors
Indicate whether the statement is true or false
A good that is rival in consumption is one that someone can be prevented from using if she did not pay for it
a. True b. False Indicate whether the statement is true or false
When deciding whether to buy a second car, the economic way of thinking indicates that the purchaser should compare
a. the benefits expected from two cars with the cost of both. b. the additional benefits expected from a second car with the cost of the two cars. c. the dollar cost of the two cars with the potential income that the cars will generate. d. the additional benefits of the second car with the additional cost of the second car.