An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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The figure above shows a nation's production possibilities frontier. If the marginal cost equals the marginal benefit at point A when 4 million pizzas are produced,
A) allocative efficiency is achieved but production efficiency is not achieved because there are no tacos being produced. B) both allocative and production efficiency are achieved. C) production efficiency is achieved but allocative efficiency is not achieved because there are no tacos being produced. D) production efficiency is achieved but allocative efficiency is not achieved because the number of tacos produced is at its absolute maximum. E) neither allocative nor production efficiency has been achieved.
For all employee earnings subject to Social Security taxes, what is the current Social Security tax rate for employers?
A) 0.8% B) 2.9% C) 4.2% D) 6.2%
The reason economists assume that firms try to maximize economic profit is
a. over time, firms that don't earn profits will have difficulty securing financing to survive b. firms in the real world always maximize profit c. profit is easier to calculate than revenues d. if a firm fails to earn a profit in its first year, it will go out of business e. profit maximization is easier for firms than revenue maximization
To calculate nominal GDP, you:
a. Multiply the quantity of everything consumed by the price of everything consumed, and sum the results. b. Multiply the exchange rate by the price of each good and service produced. Then sum them and divide by the domestic price index. c. Add the price of everything consumed to the quantity of everything consumed and sum the results. d. Add the quantities of everything produced to the average national price level and then multiply times one plus the inflation rate [i.e., (1 + inflation rate)]. e. Multiply the quantity of everything produced by the price of everything produced, and sum the results.