For firms that sell one product in a perfectly competitive market, marginal revenue is:
A. equal to market price.
B. the additional revenue gained from selling one more unit.
C. equal to average revenue.
D. All of these are true.
Answer: D
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If real GDP increases by 6 percent and at the same time the population increases by 2 percent, then real GDP per person grows by
A) 3 percent. B) 6 percent. C) 8 percent. D) 4 percent. E) 2 percent.
A trade surplus exists if export spending is less than import spending
Indicate whether the statement is true or false
The school of thought that emphasizes the natural tendency for an economy to move toward equilibrium full employment is known as the:
a. Keynesian school. b. supply-side school. c. rational expectations school. d. classical school.
The political incentive structure tends to
a. encourage a balanced budget regardless of economic conditions. b. discourage budget deficits during recessions. c. encourage budget surpluses during both recessions and expansions. d. encourage budget deficits during both recessions and expansions.