A beautiful garden that increases the value of the homes in the neighborhood is considered:
A. an inferior good.
B. a positive externality.
C. a negative externality.
D. a normal good.
B. a positive externality.
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If the central bank pursues a monetary policy that is more expansionary than what firms and people expect, then the central bank must be trying to
A) boost output in the short run. B) constrain output in the short run. C) constrain prices. D) boost prices in the short run.
YearFootballs(in millions)PÂ FootballsBooks(in millions)PÂ BooksNominal GDPReal GDP2000 Base Yr55464949200165465454200276577765200347788462Assume the table has recorded the total output and prices of the only two goods produced. Looking at the figures in the table and using them to construct the GDP deflator, we can note the GDP deflator in 2003 was:
A. 109 B. 105 C. 74 D. 135
Cartels are inherently unstable
a. True b. False
Suppose that you're the manager of a firm. You notice that when you raised your price from $10 to $11, sales fell from 500 to 400. Should you raise your price more?
What will be an ideal response?