Joe is maximizing utility by consuming three colas at $2 apiece and four hot dogs. The last cola gave him 200 units of utility, and the last hot dog gave him 300 units of utility. The price of each hot dog is:
A. $1.00.
B. $0.50.
C. $3.00.
D. $1.50.
Answer: C
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Which of the following is a true statement?
a. The LDC classification is of the questionable accuracy. b. GDP per capita ignores the degree of income distribution. c. GDP per capita is affected by exchange rate changes. d. GDP per capita does not account for the difference in the cost of living among nations. e. All of these are true.
Which of the following is true at the equilibrium level of income?
a. Unplanned inventory changes are positive. b. Firms are unable to produce the desired rate of output. c. Autonomous consumption spending is equal to induced consumption spending. d. Aggregate expenditures equal real GDP. e. Unplanned investment spending is positive.
In the base year, real GDP ________ nominal GDP.
A. is equal to B. is less than C. is greater than D. could be greater than or less than
A decrease in income will lead to an increase in the demand for an inferior good.
Answer the following statement true (T) or false (F)