If you have $5000 and the GDP deflator decreases from 100 to 80
A) the $5000 will buy 20 percent more of the goods and services produced by society.
B) the value of the $5000 remains constant.
C) the $5000 will buy 20 percent less of the goods and services produced by society.
D) the value of the $5000 decreases.
A
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Why does a new hardcover Stephen King novel have a higher price than the paperback edition?
A) It costs more to produce. B) The elasticity of demand differs. C) The publisher is more greedy when marketing the hardcover edition. D) The publisher is a price searcher on the hardcover editions and a price taker on the paperback editions.
A point to the left of the BP curve would represent
A) a balance of payments deficit. B) a balance of payments surplus. C) internal disequilibrium. D) Both A and C.
If the loss-minimizing output for a perfectly competitive firm is zero, then, at all other output levels,
a. price must be greater than average variable cost b. the marginal cost curve must slope downward c. marginal cost is less than marginal revenue d. total revenue is less than total variable cost e. total revenue is less than average variable cost
U.S. farm subsidies are a sticking point in negotiating freer international trade agreements
a. True b. False