In 2012 a country had a real GDP $15.4 trillion and GDP deflator of 125 . If that country's GDP deflator equals 115 in 2013, what is the rate of inflation in 2013?
-8%
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In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?
a. Prospective customers must be categorized according to willingness-to-pay. b. Opportunities for resale of the good or service must be limited. c. Customers cannot know that multiple prices are being charged. d. The provider must have excess capacity to accommodate the extra business. e. Both a and b.
When firms have market power, it means that they:
A. do not noticeably affect the market quantity offered for sale. B. have no control over the market price. C. can noticeably affect the market quantity available for sale. D. can noticeably affect the market price.
What is rent seeking with respect to restricting international trade?
A) The rent on factory buildings increases if trade is restricted. B) The government avoids paying rent on buildings when importers pay the tariff. C) An attempt to capture the gains from trade by imposing a tariff D) The government's efforts to capture tariff rents E) The attempt by importers to avoid paying a tariff
Refer to Table 9-10
a. Which person has an absolute advantage in the production of pens? pencils? b. Which person has a comparative advantage in the production of pens? c. Which person has a comparative advantage in the production of pencils?