Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1.
B. P2 and Y1.
C. P2 and Y3.
D. P1 and Y2.
Answer: B
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Suppose a price index is formed to measure changes in the price level between 2005 to 2010. To form a Laspeyres price index, one would
a. compare the cost of the typical basket of goods purchased in 2005 with the cost of the typical basket of goods purchased in 2010. b. calculate the increase in the cost of the typical market basket purchased in 2005. c. calculate the increase in the cost of the typical market basket purchased in 2010. d. take the typical basket of goods purchased in 2007, and compare the costs of that basket in 2005 and 2010.
Suppose it costs a farmer $1.00 to produce 1 unit of corn, $2.10 to produce 2 units of corn, and $3.30 to produce 3 units of corn. What's the marginal cost of producing 3 units of corn?
A) 0 B) 30 cents C) $1.10 D) $1.20 E) $3.30
William was asked to contribute money for a retirement home. He agreed to contribute only if his name appeared on the list of donators in the newsletter published by the home every year. This is an example of ________
A) rationalism B) liberalism C) impure altruism D) pure altruism
Under Federal Trade Commission merger guidelines, an industry with a Herfindahl-Hirschman index (HHI) of 800 points is considered
A) competitive. B) moderately concentrated. C) concentrated. D) a monopoly.