Economic growth is defined as:
A) an increase in the level of consumption.
B)an increase in either real GDP or real GDP per capita.
C) an increase in the overall general price level.
D) an increase in the nominal GDP.
A) an increase in the level of consumption.
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Ultimately, tariffs ________ prices for imported goods and ________ prices for domestic goods
A) raise; raise B) raise; lower C) raise; do not affect D) do not affect; do not affect
Suppose two firms in a duopoly implicitly collude and charge a high price. How might each firm benefit from advertising that it will match the lowest price offered by its competitor?
A) The advertisement is meant to suggest to consumers that the offered price is actually the lowest price available. B) The offer to match prices is a way of signaling to antitrust authorities that the firms are not engaged in illegal collusion. C) The advertisement ensures that the other firm does not cheat. If a firm cheats on the agreement and charges the lower price, the rival firm will retaliate by doing the same. D) The offer to match prices is a way of deterring entry by other large firms, thereby keeping the market share of the existing firms intact.
The profit maximizing or loss minimizing quantity of output for any firm to produce exists at that output level in which:
a. total revenue is maximized. b. total cost is minimized. c. marginal cost is minimized. d. marginal revenue equals marginal cost.
Mary and Mike are twins who attended grammar school through college together. Both twins got jobs in the same department of an accounting firm. They both work equally hard and have received similar performance reviews. Mary earns $62,000 a year, and Mike earns $80,000 a year. Select the best explanation for this wage difference
a. Mary has less human capital than Mike. b. Mary has more human capital than Mike. c. Mike has been discriminated against because he is male. d. Mary has been discriminated against because she is female.