If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index falls, and real GDP falls.
b. Price index falls and the change in real GDP is uncertain.
c. Price index is uncertain, and real GDP rises.
d. Price index is uncertain, and real GDP falls.
e. Neither the price index nor real GDP changes.
.C
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The marginal cost curve is U-shaped. Over the range of output for which the marginal cost is falling as output increases, the marginal product is
A) increasing. B) decreasing. C) constant. D) probably changing, but there is no stable relationship between the marginal cost and the marginal product. E) not defined.
Suppose that the number of companies selling computer software decreases. How does this change affect the supply of computer software and the supply curve of computer software?
What will be an ideal response?
Which of the following is not a typical solution to the "Tragedy of the Commons?"
a. taxing the use of the common resource b. turning the common resource into a club good c. turning the common resource into a private good d. regulating the use of the common resource
If the natural rate of unemployment equals 6 percent and the actual rate of unemployment equals 5 percent, then cyclical unemployment equals:
A. ?1.2 percent. B. -1 percent. C. 1 percent. D. 11 percent.