If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP deflator for this period?
What will be an ideal response?
The GDP deflator equals 115, or (100 ) × ($230 ) ÷ ($200 ).
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Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W30X30 If Campus Books is permitted to charge 2 prices, and the bookstore knows customers with a reservation price above $30 never bother with coupons, whereas those with a reservation price of $30 or less always use them, then what will be the bookstore's total economic profit?
A. $158 B. $150 C. $154 D. $130
If the economy's real GDP doubles in 18 years, we can
A. conclude that its average annual rate of growth is 12%. B. conclude that its average annual rate of growth is 4%. C. not say anything about the average annual rate of growth. D. conclude that its average annual rate of growth is 8%.
Which of the following is true when profit-maximizing firms in a competitive market are allowed to freely emit negative externalities on society?
a. Consumers are paying a market equilibrium price that reflects the full social marginal cost of production. b. Consumers are paying a market equilibrium price that reflects only the external marginal cost of production. c. Consumers are paying a market equilibrium price that is less than the socially efficient price, and consuming more than the socially efficient quantity. This means society is implicitly subsidizing producers by allowing them to pollute. d. None of the above is correct.
The shape of the production possibilities curve in the figure above indicates that
A) production of corn is characterized by increasing costs while the production of cloth is characterized by decreasing costs. B) production of both corn and cloth is characterized by increasing costs. C) production of both corn and cloth is characterized by constant costs. D) production of corn is characterized by constant costs and the production of cloth is characterized by increasing costs.