Nominal GDP will increase
A) only if the price level rises.
B) only if the price level falls.
C) only if the quantity of final goods and services produced rises.
D) if either the price level or the quantity of goods and services produced rises.
Answer: D
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The Roomba 570 is a robotic vacuum cleaner made and sold by iRobot. It can vacuum 4 rooms on a single battery charge and it costs $10 worth of electricity to charge the Roomba
Lynn is a house cleaner and can vacuum 4 rooms in 1/2 hour with a traditional vacuum. Suppose you want the 4 rooms in your house vacuumed once a week for one year. Ignoring the cost of any electricity Lynn uses, which method is economically efficient if Lynn charges $20 per hour? $30 per hour? A) Lynn if she charges $20 or $30 per hour B) Lynn if she charges $20 per hour and Roomba if Lynn charges $30 per hour C) Roomba if Lynn charges $20 per hour and Lynn if she charges $30 per hour D) Roomba if Lynn charges $20 or $30 per hour
A publisher is deciding whether or not to invest in a new printer. The printer would cost $500, and it would increase cash flows by $600 for the next two years. If the cost of capital is 10% then the net present value of the investment is
a. $1041.32 b. $541.32 c. $1090.91 d. $590.91
According to Adam Smith, what is the primary source of a nation's wealth?
a. The amount of gold and silver in the government's possession. b. A spirit of cooperation in which people share according to their means. c. Strong central planning authorities. d. The people's ability to produce products and trade in free markets.
What has happened to resource prices in the twentieth century and what do they reveal about resource scarcity?
What will be an ideal response?