The price of a foodstuff falls and the total revenue (received by farmers for selling the foodstuff) rises. What could explain this?
A) Increased supply and elastic demand.
B) Real income rises and the foodstuff is an inferior good.
C) Real income rises and the foodstuff is a normal good.
D) Increased supply and inelastic demand.
E) none of the above
A
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Which of the following activities is most likely to be counted in GDP?
A. Gail buys paper and crayons to donate to poor children in need of school supplies. B. Fran volunteers at the local veteran's hospital twice a month. C. Stu gave $5 to a homeless man he met in the park. D. Bud works hard five hours each week to make sure that his lawn always looks nice.
In the long run, advertising by all firms in a monopolistically competitive industry
A) increases all firms' demand. B) decreases all firms' demand. C) lowers all firms' costs. D) might increase or decrease the firms' prices. E) lowers all firms' prices.
Explain how the nominal wage rate is converted into the real wage rate. Explain why this process of conversion changes the nominal wage rate into the real wage rate
What will be an ideal response?
Assume that an economy is in equilibrium when there occurs an increase in the supply of capital. The available quantity of labor remains fixed. Once the economy has adjusted to its new equilibrium, which of the following has increased?
A) the real wage B) the rental price of capital C) the share of capital income in national income D) all of the above E) none of the above