If firms differ in terms of their technologies, a drop in demand will cause a long run decrease in output price.
Answer the following statement true (T) or false (F)
True
Rationale: If firms differ in their cost structure, the long run market supply is upward sloping.
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Which of the following methods is not used to calculate GDP?
A. The sum of all the final goods and services produced by a country’s resources B. The sum of all factor payments plus depreciation and indirect business taxes C. The sum of all values added at each stage of production D. The sum of all spending on final goods and services
The idea that the value of money is equal across countries is known as
A) interest rate parity. B) the expected profit parity effect. C) purchasing power parity. D) exchange rate parity.
The loan supply curve has a positive slope
A. for all savers. B. only for savers with fixed accumulation targets. C. for all savers except those with fixed accumulation goals. D. only for those contemplating retirement.
Refer to Scenario 19.3 below to answer the question(s) that follow. SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.Refer to Scenario 19.3. What is the excess burden of the tax?
A. $4 B. $36 C. $64 D. $100