The cost of basics like milk, bread, potatoes and bananas has jumped in the past year, forcing families to nix luxuries, steer away from organic goods and buy more house brands
"I think it's affecting everybody," said Elize Joseph 48, a nursing attendant. "To spend $40 on groceries is nothing. It doesn't go a long way." When food prices increase, what will happen to Elize's total utility? A) It increases.
B) It stays the same.
C) It decreases.
D) It cannot be determined without knowing her total income.
C
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In a country with floating exchange rates, the increase in the real income is the result of a(n) ________ in the money stock when capital mobility is ________
A) increase; high or low B) decrease; high or low C) increase; high D) decrease; low
The imperfect capital market justification for infant industry promotion
A) assumes that new industries will tend to have low profits. B) assumes that infant industries will soon mature. C) assumes that infant industries will be in products of comparative advantage. D) assumes that banks can allocate resources efficiently. E) assumes that developing country will reward the donor country.
Suppose a firm has the following total cost function TC = 100 + 2q2. If price equals $20, what is the firm's output decision? What are its short-run profits?
What will be an ideal response?
When the price level in the United States rises, then net exports should
a. rise and equilibrium real GDP should increase. b. fall and equilibrium real GDP should increase. c. fall and equilibrium real GDP should decrease. d. rise and equilibrium real GDP should decrease.