If the percent change in nominal GDP is 6 percent and the percent change in real GDP is 2 percent, inflation is:
A. 4 percent.
B. 2 percent.
C. 0 percent.
D. 6 percent.
Answer: A
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Protectionism
A) is the use of cheap labor to protect firms from paying high wages. B) refers to the use of copyright and trademark laws to protect inventors and artists from losing the rights to their creative efforts. C) is the use of trade barriers to protect domestic firms from foreign competition. D) refers to reductions in tariffs and other barriers that protect consumers from paying high prices.
The figure below shows the demand for meals at lunch and dinner for a proposed new restaurant. Suppose the marginal cost of a meal (both lunch and dinner) is constant at $10 per meal and marginal cost of providing the capacity is constant at $5 per meal. Once the managers have determined the profit-maximizing capacity, at dinner they will serve ________ meals and set a price of ________ per meal.
A) 200; $35 B) 800; $25 C) 200; $20 D) 600; $30
A subsidy to carrot farmers will
A) increase the quantity of carrots demanded. B) decrease the quantity of carrots supplied. C) increase the supply of carrots. D) leave both the supply and demand of carrots unchanged.
If there is evidence of serial correlation, then FGLS is preferred over OLS because the FGLS estimator is unbiased.
Answer the following statement true (T) or false (F)