The level of GDP at which planned expenditure equals the amount of output produced is the
A) equilibrium output. B) potential output.
C) long-run output. D) autonomous output.
A
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Retailers and other middlemen provide benefits to patrons
A) because people don't realize how much they could save by cutting out middlemen. B) but the middlemen benefit far more. C) by lowering the cost to their customers of acquiring valuable information. D) only because their customers are irrational.
If the price elasticity of supply of a good is 2, a 200% increase in the price of the good, will change the quantity supplied by:
A) 50%. B) 100%. C) 200%. D) 400%.
Suppose when the price of pizza goes from $8 to $12 per pie, production increases from 2,500 pies to 4,000 pies per month. Using the mid-point method, the percentage change in price is:
A. 0.35 B. 1.31 C. 46 percent D. 40 percent
Richard is consuming X and Y so that he is spending his entire income and MUx/Px = 6 and MUy/Py = 10. To maximize utility, he should
A. continue to consume the same amount of X and Y since he is already maximizing utility. B. consume less of both X and Y. C. consume less X and more Y. D. consume more X and less Y.