According to classical theory, any changes in aggregate demand will
A. lead to changes in real Gross Domestic Product (GDP), but not in the price level.
B. lead to changes in both real Gross Domestic Product (GDP) and the price level.
C. lead to changes in the price level.
D. have no affect on prices or real Gross Domestic Product (GDP).
Answer: C
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As concentration in an industry increases, the Herfindahl index falls
a. True b. False
What is the determining factor of the market mechanism?
A.) The price of the good. B.) The government. C.) The presence of foreigners. D.) None of the above is true.
Apartment dwellers near Wrigley Field in Chicago are often able to watch the Chicago Cubs baseball team play from the roof of their apartment building, without having to pay the cost of buying a ticket. This is an example of a:
a. marginal social cost. b. negative externality. c. positive externality. d. deadweight loss.
Suppose that the price of telephones decreases. If more are purchased then:
A. the total utility of telephones will decrease. B. the total utility of telephones will be unchanged. C. the marginal utility of telephones will likely increase. D. the marginal utility of telephones will likely decrease.