The CPI but not the GDP deflator takes into account
a. The prices of imports that consumers buy
b. Investment goods bought by businesses
c. Goods bought by the government
d. None of the above
a
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A business produced $10 million of goods in 2007 but sold only $9 million. Is the $1 million increase in inventory counted as part of the 2007 gross domestic product?
What will be an ideal response?
Assume that a monopolist practices perfect price discrimination. The firm will produce an output rate
A) that is greater than the efficient level of output. B) that is less than the efficient level of output. C) that is equal to the efficient level of output. D) that converts consumers surplus into a deadweight loss.
Answer the following statement(s) true (T) or false (F)
1. A country or region’s comparative advantage is based on its natural resources and therefore does not change over time. 2. Because cocaine and stolen identity information are illegal, there are no markets for these items. 3. The market price reflects the value buyers place on a good or service and the cost to society of producing it. 4. Government price controls effectively endow the market price with meaning for buyers and sellers.
In 2012, all of fast-food chains expanded their hours of operation, with nearly 40% of all McDonald's restaurants being open 24 hours per day. This strategy was aimed at increasing sales because:
A) it was estimated that nearly one-fifth of all employed Americans worked primarily in the evening contributing to the demand for fast-food in late hours. B) it was estimated that consumers who shop at night tend to be more price sensitive. C) it was believed that longer hours of operation would lead to greater brand loyalty. D) none of the above.