According to the case, price has a disproportionate effect on the bottom line relative to
A) demand changes.
B) total and fixed costs.
C) capital expenditures.
D) the cost of capital.
B
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When a consumer is at his or her best affordable point, the budget line
A) is flatter than the highest attainable indifference curve. B) is tangent to the highest attainable indifference curve. C) is steeper than the highest attainable indifference curve. D) does not touch the highest attainable indifference curve.
Which of the following best describes gross domestic product (GDP)?
a. The market value of all inputs imported into a domestic economy to produce final goods and services during a period of time such as a year. b. The market value of all final goods and services produced in a nation during a period of time such as a year. c. The quantity of all goods and services produced in a nation during a period of time such as a year. d. The average price of all goods and services produced in a nation during a period of time such as a year.
Compared to the unemployed during the Great Depression, persons unemployed in today’s economy are
A. worse off due to higher price levels. B. worse off due to higher rates of unemployment in the 1990s. C. better off due to unemployment insurance. D. better off due to lower price levels.
When oligopoly firms collude to raise prices,
A. Each firm benefits, but society loses. B. Only the price leader benefits while other firms and society lose. C. Both the colluding firms and society benefit. D. Everyone is eventually a loser.