What are the three coordination tasks which markets resolve?
They are (1) how to produce any given combination of goods efficiently, (2) how to select an appropriate combination of goods, and (3) how to distribute these goods and services among people.
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The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is unregulated, it will produce ________ and sell at a price of ________
A) 200 kwh; 10¢ per kwh B) 200 kwh; 30¢ per kwh C) 300 kwh; 20¢ per kwh D) 400 kwh; 10¢ per kwh
Which of the following is an example of an implicit cost a firm might incur?
A) the opportunity cost to investors of the funds invested in the firm B) the wages paid to employees C) utility payments D) the payment for medical insurance coverage
The Bureau of Economic Analysis releases last quarter's growth rate in real GDP. This release would most likely have been written by what kind of an economist?
A. A monetary economist B. A macroeconomist C. A microeconomist D. A labor economist AACSB: Reflective Thinking
In the long run, if the money supply increases: a. most of the resulting rise in nominal GDP will be a result of increases in the exchange rate. b. most of the resulting rise in nominal GDP will be a result of increases in the price level. c. most of the resulting rise in real GDP will be a result of increases in the price level
d. most of the resulting rise in real GDP will be a result of increases in the interest rate. e. most of the resulting rise in real GDP will be a result of increases in aggregate expenditure.