Between two years, GDP at constant prices increased by 5 percent while GDP at current prices increased by 7 percent. Based on this information, the price level
A. decreased by 12 percent.
B. decreased by 2 percent.
C. increased by 12 percent.
D. increased by 2 percent.
Answer: D
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Mutually beneficial trade is impossible when different persons have different preferences about goods and services
a. True b. False Indicate whether the statement is true or false
Generally, the opportunity cost and the money cost of a good
a. are identical only if the good sells in a free market. b. are different. c. matter only to the purchaser of the good. d. are not reflected in its price.
According to game theory, a cartel of several firms is an example of a(n)
A. zero-sum game. B. positive-sum game. C. noncooperative game. D. cooperative game.
Cross-subsidization occurs when
A. The government subsidizes production of a product. B. Profitable firms in an industry are forced to share their profits with the unprofitable firms. C. Firms are required to subsidize government research and development that may benefit their industry. D. Profits on one product are used to subsidize low prices on another product.