Other things equal, when the real interest rate rises, C, I and NX ________ and real GDP will ________ relative to potential GDP
A) decrease; decrease
B) decrease; increase
C) increase; increase
D) increase; decrease
A
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Refer to the figure above. If the relative price of T were to increase, then the price line would
A) shift out in a parallel fashion. B) shift in a parallel fashion. C) become steeper. D) become flatter.
Marissa walks into a convenience store to buy something to drink. As she stares into the cooler, her opportunity cost of choosing a Gatorade is:
A. obvious. It's the value she places on whatever drink she would choose if she didn't pick Gatorade. B. distant and abstract. It's the value she places on whatever drink she would choose if she didn't pick Gatorade. C. obvious. It's the value she places on all the other drinks she could choose instead of Gatorade. D. distant and abstract. It's the value she places on all the other drinks she could choose instead of Gatorade.
An oligopoly is a market structure in which there
a. are no good substitutes produced within the industry, giving each firm substantial market share b. are perfect substitutes produced within the industries, giving each firm only partial market share c. are monopolies competing to create monopolistic competition in the short run and oligopoly in the long run d. are at least 25 firms producing an identical good e. are only a few firms in the industry
According to the circular flow model, expenditures by one person translate:
A. directly into income for someone else. B. indirectly into the value of that person's time. C. indirectly into the household's budget. D. directly into his or her income.