Over a year, a nation's GDP at current prices rose by 15 percent while the price index increased from 100 to 110. GDP at constant prices rose by about:
A. 3 percent
B. 5 percent
C. 7 percent
D. 9 percent
B. 5 percent
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What did the Federalists believe about banking?
(A) They believed that state governments should own and run the nation's banks. (B) They believed that the banking system already in existence was sufficient. (C) They believed that a centralized banking system was necessary. (D) They believed an international banking system would be best.
Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is economic profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
Offer a skeptical perspective on the long-term economics of the recent increase in trend rate productivity.
What will be an ideal response?
A potential negative effect of advertising for society is that it can:
A. Be the major cause of price wars among firms in the industry B. Reduce mutual interdependence and increase competition C. Be self-canceling and contribute to economic inefficiency D. Lower barriers to entry and undermine profits in the industry