Nominal income is equal to real income if the CPI is less than 100
Indicate whether the statement is true or false
FALSE
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A firm would find it profitable to increase its production when
a. its marginal revenue exceeds its marginal cost. b. its fixed costs decrease. c. higher resource costs raise its marginal costs. d. new competitors reduce the demand for the firm's product.
Lily is a college student who likes to buy only two goods: Cheetos and Pepsi. To determine Lily's budget line, you need to know I. Lily's preferences for Cheetos and Pepsi. II. The prices of Cheetos and Pepsi. III. Lily's income
A) II only B) I and II C) II and III D) I, II and III
The market produces too much of a good with ______.
a. adverse selection b. negative externalities c. positive externalities d. asymmetric information
Generally, if a nation produces more consumer goods than capital goods
A. more of all goods may be produced in the future. B. about the same amount of capital goods may be produced in the future as are being produced today. C. less of all goods may be produced in the future. D. society will have to forego future consumption of capital goods.