If in a market the last unit of output was sold at a price higher than marginal cost
A) producer is better off producing more.
B) consumers are better off if less of the product is sold.
C) social welfare is not maximized.
D) the unit increased total profit.
C
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If nominal GDP increases from one year to the next, then
A) production must have increased. B) production could have increased, decreased, or stayed the same. C) prices must have increased. D) prices and production must both have increased. E) prices and production must both have decreased.
A horizontal LM curve implies that the expenditure multiplier, when compared with the simple Keynesian expenditure multiplier, is
A) smaller. B) larger. C) equal. D) equal to the inverse of the simple multiplier.
In the Keynesian aggregate expenditure graph (Figure 5-5), the 45 degree line is meant to indicate that:
a. planned aggregate expenditure always equals aggregate income. b. savings must equal investment. c. actual aggregate expenditure must equal aggregate income. d. actual income must equal planned income. e. none of the above.
Use the information in the table below.Percentage of salesIndustry 1Industry 2Industry 3Industry 4Firm 155%45%25%10%Firm 210%35%40%60%Firm 325%20%35%10%Firm 410% 20%Which of the following industries is the most concentrated based on the Herfindahl index?
A. Industry 1 B. Industry 2 C. Industry 3 D. Industry 4