The more the short-run output exceeds an economy's potential, _____
Fill in the blank(s) with the appropriate word(s).
the greater the upward pressure on the price level.
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In order to isolate the substitution effect of a price increase, a consumer
a. must be given a lower price on the other good so that he can achieve his original indifference curve. b. must be given enough of the other good so that his consumption of that good is not influenced. c. must be given enough additional income to allow him to achieve his original indifference curve. d. must be given enough additional income to allow him to purchase the original quantity of the good.
Questions of what to produce, how much to produce, and who will get the output must be faced by
a. market economies. b. centrally planned economies. c. the economies of underdeveloped countries. d. all economies.
Price for a perfectly competitive seller equals:
A) average revenue divided by price. B) marginal revenue divided by price. C) total revenue. D) marginal revenue.
If the aggregate income of an island country is $8 million and income per capita is $5,000, the total population of the island is ________
A) 1,600 B) 106,000 C) 40,000 D) 20,000