What price should a firm charge for a package of two shirts given a marginal cost of $4 and an inverse demand function P = 8 ? 2Q by the representative consumer?
A. $8
B. $4
C. $16
D. $12
Answer: D
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In the short run, there is a positive relationship between: a. inflation and unemployment
b. inflation and real GDP. c. the actual price level and the aggregate quantity supplied. d. the actual price level and unemployment. e. the actual price level and consumption spending.
Economists measure the price level
A. by keeping track of nominal GDP. B. using a price index. C. by measuring the growth rate in money supply. D. by measuring the growth rate in real GDP.
?Hair Pins /hourBandanas /hourNigel410Mia93
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Which of the following is true?
A. Mia has an absolute advantage in producing hair pins but not bandanas. B. Mia has an absolute advantage in producing bandanas but not hair pins. C. Mia has an absolute advantage in producing both goods. D. Mia does not have an absolute advantage in producing either good.
Governments, like individuals, businesses, and entire economies face resource and spending limits. Over the very long run, the limits mean that
A) spending must be paid for by income or revenue and not by more debt B) spending now must be paid for by income or revenue now C) the debt to gdp ratio must be zero D) spending must eventually decrease if running a budget deficit