An increase in the price of dairy products produced domestically will be reflected in
a. both the GDP deflator and the consumer price index.
b. neither the GDP deflator nor the consumer price index.
c. the GDP deflator but not in the consumer price index.
d. the consumer price index but not in the GDP deflator.
a
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Bob and Mary each have a Ph.D. in economics. Bob has a job in private industry at which he earns $90,000 a year. Mary earns half that much as a college professor. Which of the following could not explain Mary's career choice?
a. She experiences diminishing marginal utility. b. She enjoys the flexibility of her schedule. c. She enjoys teaching. d. She enjoys the informal atmosphere of a college. e. She likes having her summers free to do research.
Which of the following observations would be consistent with the imposition of a binding price floor on a market? After the price floor becomes effective,
a. a smaller quantity of the good is bought and sold. b. a larger quantity of the good is demanded. c. a smaller quantity of the good is supplied. d. the price falls below the equilibrium price.
A perfectly elastic demand function
A. is characteristic of an individual firm operating in a perfectly competitive market. B. shows that the individual firm can increase sales by lowering the price of output. C. has a marginal revenue that is always decreasing. D. shows that a consumer is willing to pay any amount for the product.
Assume the current interest rate is 20%. The present value of $900 in one year would be
A. $180. B. $450. C. $750. D. $1,080.