An equilibrium level of real GDP is one for which
A. consumption equals disposable income.
B. aggregate purchases equal consumption.
C. aggregate quantity demanded equals aggregate quantity supplied.
D. None of the choices are correct.
C. aggregate quantity demanded equals aggregate quantity supplied.
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The above figures show the market for HD televisions. If there are severe earthquakes that destroy a significant number of HD television manufacturing plants, which figure shows the effect of the earthquake?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal. What is the size of the deadweight loss from the program?
A. $1.5 billion B. $3 billion C. $4.5 billion D. $18 billion
When using the traditional command-and-control approach to environmental regulation, the government attempts to:
a. set a minimum requirement and then allows the firm to determine the most efficient method for achieving this requirement. b. determine the most efficient method for different industries. c. make allowances for differences across industries and between firms. d. set standards that are applicable to all situations and does not recognize unique circumstances.
If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
A. decreasing cost industry. B. increasing cost industry. C. constant cost industry. D. industry characterized by economies of scale.