In a perfectly competitive market, technological advances bring ________ economic profits for producers and ________ lower prices for consumers
A) permanent; permanently
B) permanent; temporarily
C) temporary; permanently
D) temporary; temporarily
C
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
The demand curve faced by a pure monopolist
A) is the same as its marginal revenue curve. B) is perfectly inelastic. C) lies below the marginal revenue curve. D) is the market demand curve.
Crime currently affects the measurement of GDP such that
a. expenditures on police protection and detention centers contribute to GDP. b. the loss to victims due to crime is subtracted from GDP. c. crime is completely ignored because it does not express the economic well-being indicated by GDP. d. expenditures on police protection and detention centers are subtracted from GDP.
Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is 
. Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. Are you a risk lover, risk neutral or risk averse?
What will be an ideal response?