Risk can often be reduced by investing in a large number of projects

Indicate whether the statement is true or false


TRUE

Economics

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The base year is 2010. A country only produces MP3 players. The price of an MP3 player in 2008 was $50. The price of an MP3 player was $30 in 2010. The quantity of MP3 players produced in 2008 was 10,000 units and in 2010 was 20,000 units

Nominal GDP in 2010 equals A) $500,000. B) $200,000. C) $1,000,000. D) $600,000. E) an amount that cannot be determined without information about real GDP in 2010.

Economics

If the production of a good involves negative externalities, ________

A) the quantity of the good supplied in the market is lower than the efficient level B) the optimal price of the good is higher than the price charged in the market C) total welfare can be increased by increasing the production of the good D) average cost of production can be reduced by increasing output above the optimal level

Economics

In the HPAE, inflation is kept under control and budget deficits and foreign debt levels are kept within the ability of the governments and the economies to handle them, which is quite different from the past experience of the Latin American region

Indicate whether the statement is true or false

Economics

Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K rises by 10%, and A and N are unchanged, by how much does Y increase?

A) 30% B) 10% C) 6% D) 3%

Economics