Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 2 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:
A. positive and greater than $10,000.
B. zero.
C. positive but less than $10,000.
D. negative.
Answer: C
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Which of the following will NOT shift the supply curve for pick-up trucks?
A) a technological advance B) an increase in the price of a resource used to produce pick-up trucks C) a change in the number of firms supplying pick-up trucks D) a change in the price of pick-up trucks
Suppose that when the price of ginger ale is $2 per bottle, firms can sell 4 million bottles. When the price of ginger ale is $3 per bottle, firms can sell 2 million bottles. Which of the following statements is true?
a. The demand for ginger ale is income inelastic, so an increase in the price of ginger ale will increase the total revenue of ginger ale producers. b. The demand for ginger ale is income elastic, so an increase in the price of ginger ale will increase the total revenue of ginger ale producers. c. The demand for ginger ale is price inelastic, so an increase in the price of ginger ale will increase the total revenue of ginger ale producers. d. The demand for ginger ale is price elastic, so an increase in the price of ginger ale will decrease the total revenue of ginger ale producers.
Tanya is a manager at a global firm that has operations located in Brazil, India, and Japan. Tanya is in the process of making a fundamental analysis in order to forecast exchange rates in each country. Which of the following is a confidence factor that Tanya should consider in trying to predict exchange rate movements in each country?
A) What are the expectations of the market with respect to the political environment? B) Have there been significant national events that have appeared in the news lately? C) At what rates do there appear to be buy and sell orders? D) What trends do the charts show?
Which of the following is a price floor?
A) rent controls B) minimum wage rates C) a freeze on upward-moving gasoline prices D) college tuition caps