Real GDP is not a perfect measure of economic well-being because it excludes the value of all of the following except:
A. goods and services produced in the underground economy.
B. goods and services available in the market economy.
C. leisure time.
D. nonmarket economic activity.
Answer: B
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If the money stock is $900 million and the reserve requirement is 20%, what is the monetary base?
A) $180 million B) $4,500 million C) $720 million D) The monetary base cannot be determined with the information given.
Economists believe that the CPI overstates actual price changes by as much as ________ to ________ percent each year.
A. 1; 2 B. 2; 3 C. 0.5; 1 D. 0.5; 1.5
A firm that is a monopolist in the output market and a monopsonist in the input market
A. will hire the same amount of labor as if perfect competition prevailed in both markets, but pay a lower wage. B. will hire less labor and pay a lower wage compared to the perfectly competitive case. C. will hire less labor but pay the same wage compared to the perfectly competitive case. D. will restrict the level of output but not that of employment compared to the perfectly competitive case.
When a monopolist integrates vertically with another monopolist the result:
a. is always beneficial to consumers. b. is never beneficial to consumers. c. may or may not be beneficial to consumers. d. does not have any effect on consumers.