Increased production, but not increased inflation, will result in higher:
A. nominal GDP.
B. money GDP.
C. real GDP.
D. current dollar GDP.
Answer: C
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As recessions begin, income
a. and unemployment both fall. b. falls and unemployment rises. c. and unemployment both rise. d. rises and unemployment falls.
A large increase in Micromania's exports to other countries will cause, ceteris paribus, Micromania's currency to appreciate
Indicate whether the statement is true or false
Economic analysis assumes that
a. people act only out of selfish motives. b. people are motivated by a variety of forces; however, changes in personal benefits and costs affect behavior only when individuals are motivated by selfishness. c. people are basically unselfish, and their actions are, therefore, difficult to predict. d. changes in the personal benefits and costs associated with an activity will exert a predictable influence on the behavior of both those who are selfish and those who are unselfish.
If the price a consumer pays for a product is equal to a consumer's willingness to pay, then the consumer surplus relevant to that purchase is
a. zero. b. negative, and the consumer would not purchase the product. c. positive, and the consumer would purchase the product. d. There is not enough information given to answer this question.