If the price of your cell phone service increases from $70 to $105 over a period of one year and your income rises from $1,500 to $1,525, your nominal income has
A. Increased, but your real income has remained the same.
B. Increased, and your real income has increased.
C. Increased, but your real income has decreased.
D. Decreased, and your real income has decreased.
Answer: C
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If a nation imports a good that can be domestically produced, what happens to the quantity consumed of the good and why?
A) The quantity consumed increases because the market price increases. B) The quantity consumed increases because the market price decreases. C) The quantity consumed remains constant because the price is unchanged. D) The quantity consumed decreases because the market price increases. E) The quantity consumed decreases because the market price decreases.
The figure above shows the cost, marginal revenue, and demand curves of Golden Chow, a producer of dog food. The market for dog food is monopolistic competition. In the short run, Golden Chow sells 400 cans of dog food per day and makes ________
Other firms have ________ incentive to enter the industry. A) an economic profit of $200 a day; an B) an economic profit of $400 a day; an C) a normal profit of $200 a day; no D) an economic profit of $400 a day; no
Implicit costs are costs that do not require an outlay of money by the firm
a. True b. False Indicate whether the statement is true or false
The "principle of rival consumption" applies to which of the following?
A) national defense B) the free-rider problem C) the exclusion principle D) a private good