Real GDP will increase
A) only if the price level rises.
B) only if the price level falls.
C) only if the quantity of final goods and services produced rises.
D) if either the price level rises or the quantity of final goods and services produced rises.
Answer: C
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The concept of government as redistributor is
A. approved by many but questioned by many as well. B. generally rejected as against “the American way.” C. largely approved by a vast majority of Americans. D. unnecessary in the United States because income disparities are small. E. a conservative idea that many liberals reject.
Refer to the normal-form game of price competition in the payoff matrix below.Firm AFirm B??Low PriceHigh Price?Low Price0,050,-10?High Price-10,5020,20Suppose that firm A deviates from a trigger strategy to support a high price. What is the present value of A's payoff from cheating?
A. 50 B. 30 C. 70 D. 20
In Figure 8.10, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit-maximizing price of $300 per ticket. What is Fly Smart's profit per ticket?
A. $200 B. $120 C. $80 D. $0
Changes in relative prices may occur in a period of
A. Inflation only. B. Deflation only. C. Stable prices only. D. Stable prices, inflation, or deflation.