“Moonshine” is illegally produced liquor and the production process adds sugar to accelerate corn fermentation. Ten pounds of sugar are necessary to make a gallon of moonshine. When the price of sugar tripled, the price of moonshine skyrocketed from $6 to $15 a gallon. Which graph in Figure 4-9 best illustrates this?
A. 1
B. 2
C. 3
D. 4
Answer: D
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If the deficit is 0.02 times GDP, the existing debt—GDP ratio is 0.5, and the growth rate of nominal GDP is 0.03, then the change in the debt—GDP ratio is
A) +0.05 B) +0.025. C) 0. D) -0.025.
In calculating GDP, the largest component of total expenditures is
a. consumption b. imports c. net exports d. investment
Which of the following is NOT an example of investment?
a) The campus bookstore buys new T-shirts with the college logo. b) Toyota expands the size of its factories located in the United States c) A business owner uses his profits to play the lottery and wins. d) A hair salon buys additional hair dryers.
The U.S. antitrust enforcers will likely block a merger if
A. the merging firms are in different markets. B. the merger will substantially increase market power. C. the degree of concentration declines as a result of the merger. D. the merging firms already earn excessive profits.