At a rummage sale, you buy two old books and an old rocking chair; your spending on these items is not included in current GDP
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose prices are quoted in dollars and transactions are conducted in pesos. The dollar serves as a
A) medium of exchange. B) store of value. C) unit of account. D) all of the above.
The opportunity cost of a good is the same as its
A) money price. B) relative price. C) price index. D) none of the above.
Refer to Figure 13-3. Suppose the economy is at point C. If government spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
Chrissy and Marvin are competitors in a local market and each is trying to decide if it is worthwhile to advertise. If both of them advertise, each will earn a profit of $10,000 . If neither of them advertise, each will earn a profit of $20,000 . If one advertises and the other doesn't, then the one who advertises will earn a profit of $30,000 and the other will earn $14,000 . To earn the highest
profit, Chrissy a. should advertise, and she will earn $10,000. b. should advertise, and she will earn $30,000. c. should not advertise, and she will earn 20,000. d. has no dominant strategy.