Use the following table for a hypothetical single-product economy. year units of output price per unit price index (1=100) 1 10 10 100 2 12 20 200 3 15 30 300 4 20 40 400 Refer to the above data. Nominal GDP in year 4 is:
a) $320.
b) $450.
c) $225.
d) $800.
d) $800.
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A public expenditure that has to be approved each year is called:
A. discretionary spending. B. nondiscretionary spending. C. entitlement spending. D. earmarked spending.
Which countries demonstrate the theory of convergence with their closing of the gap with world leaders?
a. Hong Kong b. Singapore c. South Korea d. All of the above
Use the above table and assume a fixed cost of $200. At an output of 3, AVC is
A. $133.
B. $167.
C. $200.
D. $500.
If firms in a monopolistically competitive industry are operating with economic losses, over time we would see
A) firms alter their advertising rates until they made at least normal profits. B) some firms exiting the industry, causing the market supply curve to shift to the left, raising price. C) some firms exiting the industry, causing the demand curves of the remaining firms to shift to the right. D) the firms working together to increase price and everyone's profitability.