Suppose you have a money income of $10 all of which you spend on Coke and popcorn. In the above diagram, the prices of Coke and popcorn respectively are:
A) $.50 and $1.00.
B) $1.00 and $.50.
C) $1.00 and $2.00.
D) $.40 and $.50.
Ans: A) $.50 and $1.00.
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A logarithmic variable cost function implies that
A) marginal cost is increasing at a decreasing rate. B) marginal cost is increasing at an increasing rate. C) marginal cost is constant. D) marginal cost is decreasing as quantity increases.
Evaluate the statement: “No nation can grow without a large natural resource base.”
What will be an ideal response?
Anti-inflationary policy is less costly when that policy is anticipated in ________
A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) institutionalist theory
Assuming a fixed exchange rate, a decrease in U.S. prices relative to European prices will:
a. decrease European exports to the United States. b. increase U.S. imports from Europe. c. decrease aggregate spending in the U.S. d. not affect U.S. exports or imports. e. raise the purchasing power of U.S. consumers.