Refer to the following graph.
If this country is producing between point P and G, it will gain by ________ its production of good A and importing more ________.
A. decreasing; good B
B. decreasing; good A
C. increasing; good A
D. increasing; good B
Answer: D
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What can, in general, be said about a monopoly's supply curve?
a. A monopoly's supply curve, like that for a competitive firm, coincides with its marginal cost curve. b. A profit-maximizing monopoly will operate only on the elastic portion of its supply curve. c. The monopoly's supply curve is more inelastic than if the firm were competitive. d. The concept of a supply curve is meaningless in the context of the monopoly problem.
Barbara is willing to loan $10,000 if she can earn a real interest rate of 6 percent. Everything else the same, if the inflation rate is 2 percent, she would agree to loan the $10,000 if the nominal interest rate is ________ because ________
A) 8 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower B) 4 percent or lower; she would not earn her desired amount of 6 percent if the nominal interest rate was any higher C) 8 percent; she would earn more than her desired amount of 6 percent D) 8 percent or lower; she would not earn her desired amount of 6 percent if the nominal interest rate was any higher E) 4 percent or higher; she would not earn her desired amount of 6 percent if the nominal interest rate was any lower
When income rises, total expenditures remain constant
a. True b. False Indicate whether the statement is true or false
Economic growth is best measured by the increase in
A. nominal GDP. B. potential output. C. disposable personal income in current dollars. D. disposable personal income in real dollars.