If real GDP rises and the GDP price index has increased:
A. the percentage increase in nominal GDP must have been less than the percentage
increase in the price level.
B. nominal GDP may have either increased or decreased.
C. nominal GDP must have increased.
D. nominal GDP must have fallen.
C. nominal GDP must have increased.
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Property rights are useful in predicting behavior when we define ownership of a resource as
A) a moral claim to a particular resource. B) legal title to the resource. C) physical possession of the resource. D) the ability to appropriate the benefits from use of a resource.
Which of the following is NOT a club good?
A) cable television B) a rock concert C) a country club D) a baseball bat
In order to maximize profits, a firm that can sell all it wants without affecting price should produce
a. where average variable costs are minimized. b. where marginal cost is equal to average variable costs. c. where marginal cost is equal to price. d. where marginal cost is a minimum.
The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,
a. the average is increasing b. the average is decreasing c. the marginal is increasing d. the marginal is decreasing e. the total is decreasing