________ monetary policy causes the real interest rate to ________
A) Expansionary; remain unchanged B) Contractionary; remain unchanged
C) Expansionary; rise D) Contractionary; rise
D
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Nominal GDP is ________.
A. the amount of production that occurs when the economy is operating at full employment B. the sum of all monetary transactions involving final goods and services that occur in the economy in a year C. the sum of all monetary transactions that occur in the economy in a year D. money GDP adjusted for inflation
Legal limits on prices will tend to cause misallocation of resources because
a. production (or opportunity) cost no longer corresponds to market price. b. people are unable to determine their preferences at the high or low price. c. producers no longer have incentive to be profitable. d. consumers no longer have incentive to spend their income efficiently. e. All of the above are correct.
For a firm operating in a competitive industry, which of the following statements is not correct?
a. Price equals average revenue. b. Price equals marginal revenue. c. Total revenue is constant. d. Marginal revenue is constant.
The Edgeworth Box should
A. lie inside the PPF. B. lie partially inside the PPF. C. lie completely outside of the PPF. D. never touch the PPF.