If nominal GDP rises from one year to the next, then
What will be an ideal response?
either output, or the general level of prices, or both must be rising.
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Suppose Florida issues an alligator hunting permit to Jackson, who values an alligator hunt at $2,500, instead of Oliver, who values an alligator hunt at $4,000, and alligator hunting permits are allowed to be bought and sold in a secondary market
If Jackson and Oliver agree on a price for Jackson to transfer the permit to Oliver, society would capture ________ cooperative surplus. A) an additional $1,500 of B) no additional C) an additional $6,500 of D) The additional cooperative surplus captured by society would depend on the negotiated price of the permit.
Answer the question on the basis of the following information: Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions. The price of labor is P L and that of capital is P C . The marginal product of labor is MP L and that
of capital is MP C . The firm sells its product competitively at a price of P X . Refer to the given information. If MP C /P C > MP L /P L , the firm: A. may be maximizing profits, but it is not minimizing costs. B. may be minimizing costs, but it is not maximizing profits. C. is neither minimizing costs nor maximizing profits. D. is minimizing costs and maximizing profits.
Recall the Application about the manufacture of fake killer whales used to scare sea lions off the Washington coast to answer the following question(s).Recall the Application. The mold used to produce the fake killer whales is an indivisible input.
Answer the following statement true (T) or false (F)
Dollar Bank is currently loaned up. If the required reserve ratio is lowered
A. Dollar Bank will have excess reserves that it can lend out. B. Dollar Bank's net worth will increase. C. Dollar Bank will still be loaned up because it did not receive any additional deposits. D. Dollar Bank's actual reserves will increase, but it will still be loaned up.