If the MPC is 0.8 and the APC is 0.9, the MPS equals
A. 1.7.
B. 0.1.
C. 0.2.
D. 0.8.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. The Robinson-Patman Act was designed to stop resale price maintenance. 2. It is possible for a firm engaging in predatory pricing to make a profit on the good even thought the price is set artificially low. 3. It is possible to avoid the prisoners' dilemma as long as the interaction is repeated and has a definite ending date. 4. Fair trade refers to the fact that retailers are free to set their price in the absence of resale price maintenance. 5. An attorney that finds a loophole in a law has formed a creative response to the law.
In China, suppose that the price level was 100 in 2014, 110 in 2015, and 120 in 2016. Over these three years
A) the inflation rate accelerated. B) inflation did not occur. C) prices were stable. D) the inflation rate was positive.
If a country had a real GDP of $500 million, and the GDP deflator was110, what is the nominal GDP?
a. $440 million b. $540 million c. $450 million d. $550 billion
If real Gross Domestic Product (GDP) is at an equilibrium level in a closed economy,
A. unplanned inventory accumulation will equal planned inventory accumulation. B. real GDP equals the sum of consumption and investment minus government purchases. C. real GDP equals the sum of consumption, investment, and government purchases. D. saving will be less than planned investment.