Assume there are only two goods in the economy, apples and bananas. In 2018, 2,000 apples were sold at $1 each and 8,000 bananas at $0.60 each. In 2019, the price of apples rose to $1.5 and the quantity rose to 2,200; the price of bananas rose to $0.80 and the quantity sold rose to 8,500. Calculate the GDP deflator in 2019 using 2018 as the base year.
What will be an ideal response?
138.36
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To get the first order conditions in a profit maximization problem, we must ________
A) set the profit function equal to zero and solve for the production function B) set the partial derivatives of the production function equal to zero and solve for the price C) set the partial derivative of the profit function equal to zero and solve for the marginal products D) set the production function equal to zero and solve for the marginal products E) none of the above
In the late 19th and early 20th century, the relative earnings of foreign workers were ________________ the earnings of native workers after adjusting for differences in schooling, skills and other factors
a. approximately equal to b. much less than c. slightly greater than d. much greater than
When government owns a natural monopoly and avoids subsidies, it:
A. still creates deadweight loss. B. sets price above marginal cost. C. recognizes setting price equal to marginal cost would cause the enterprise to incur losses. D. All of these statements are true.
Which of the following statements about frictional unemployment is true?
a. It can be eliminated only in a free society. b. It is a long-term unemployment. c. It does not exist in developed economies. d. It is also called structural unemployment. e. It arises when people choose to change jobs.