In contrast with nominal GDP, real GDP refers to nominal GDP
What will be an ideal response?
corrected for price change
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The World Trade Organization (WTO) is an international organization designed to:
A. monitor and enforce trade agreements, while also promoting free trade. B. monitor and enforce world banking policies, and lending between nations. C. provide a forum for all nations to have discussion on various international issues of concern. D. international governing body that is the final arbiter of all world trade.
The market price equals the equilibrium price if quantity demanded equals quantity supplied at the market price.
Answer the following statement true (T) or false (F)
Suppose a perfectly competitive firm can produce 20,000 bushels of corn a year at an output at which marginal cost equals marginal revenue. The market price of corn per bushel is $2.00. The firm's total costs per year are $50,000 and fixed costs per year
are $25,000. In the short run, this firm should A) shut down. B) continue producing until the price of corn increases. C) produce 20,000 bushels of corn because, although they are losing money, they are losing less than if they shut down. D) produce 40,000 bushels to try to increase economic profit.
Refer to Figure 26.2 for a monopolistically competitive firm. At the profit-maximizing output and price, this firm is experiencing economic
A. Profits and should stay in this market in the long run. B. Profits but could make even higher economic profits producing the next best alternative good. C. Losses and should shut down in the short run. D. Losses but should keep producing in the short run.