What is the phase of the business cycle when GDP reaches its maximum point?
Peak
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In the long run, perfectly competitive firms make zero economic profit. This result is due mainly to which of the following assumptions?
A) few buyers and sellers B) unrestricted entry and exit C) firms must act as price takers D) demand for the firm's output is perfectly elastic
Which of the following is included in GDP, but may not have been economically beneficial?
a. Building schools b. Water treatment plant construction c. Residential alarm installations d. Airport construction
If the CPI was 110 this year and 100 last year, then
a. the cost of the CPI basket of goods and services increased by 10 percent this year. b. the price level increased by 110 percent this year. c. the inflation rate for this year was 10 percent higher than the inflation rate for last year. d. All of the above are correct.
Which of the following is most likely an example of constant returns to scale?
A. Alpha-Beta Inc. raised its price 10 percent after a 5 percent increase in production costs. B. The XYZ Co. increased production 25 percent and experienced a 30 percent increase in its total cost. C. The per-unit costs of Excel Publishing Company's manuals fell after a large order was received from the government. D. Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant.