?Exhibit 10A-1 Aggregate demand and supply model
As shown in Exhibit 10A-1 and assuming the aggregate demand curve shifts from AD1and AD2, the full-employment level of real GDP is:
A. ?$12 billion.
B. ?$8 billion.
C. ?$150 billion.
D. ?unable to be determined.
Answer: B
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Black markets can occur when price ceilings are imposed in a market. Which of the following explains why sellers participate in a black market?
A) Sellers are able to sell the product for a higher than legal price. B) There are more buyers in the black market than in the legal market. C) The demand is perfectly elastic in a black market. D) The demand is perfectly inelastic in a black market. E) The surplus in the legal market means that many sellers can sell their product in the black market.
Dumping occurs when a foreign firm ________
A) pollutes international waters B) disposes of waste materials in other countries C) sells inferior output to foreigners D) sells its exports at a lower price than its cost of production
Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500
If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part time while attending the summer school, but you will earn only $3,000. a) What will the summer school cost you in terms of money explicitly paid? b) What are the opportunity costs of going to summer school that you don't pay explicitly? Explain. c) What is your total opportunity costs of going to school this summer? Explain your answer.
Total factor productivity is
a. changes in amounts of factors of production b. changes in output due to changes in the amount of factors of production c. changes in output due to changes in productivity of factors of production d. changes in productivity of factors of production due to changes in other factors e. none of the above