Howie just bought a new digital camera to replace his old one. His old one works perfectly fine and would sell on Craigslist for $100. The fact that Howie would not pay $100 for it, yet continues to let it sit in his closet unused is explained by:
A. the implicit cost of ownership.
B. the explicit cost of ownership.
C. the explicit cost of sales.
D. ignoring sunk costs.
A. the implicit cost of ownership.
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If the GDP price index is 125 and nominal GDP is $130 billion, then real GDP equals ________ billion
A) $104.00 B) $162.50 C) $96 D) $1.04 E) $9.6
From an economic perspective, the best response to increased wage inequality is to:
A. stop all international trade. B. provide transition aid to disadvantaged workers. C. make skill-biased technological change illegal. D. block future technological change.
If real GDP is less than potential GDP, then the ________ and the price level ________
A) aggregate demand curve shifts leftward; rises B) aggregate demand curve shifts rightward; falls C) aggregate supply curve shifts leftward; rises D) aggregate supply curve shifts rightward; falls E) amount of potential GDP increases; falls
The demand curve facing a firm is also the firm’s
A. total utility curve. B. average revenue curve. C. average utility curve. D. total revenue curve.