Suppose that in 2010, the producer price index increases by 1.5 percent. As a result, economists most likely will predict that
a. GDP will increase in 2011.
b. the producer price index will increase by more than 1.5 percent in 2011.
c. interest rates will decrease in the future.
d. the consumer price index will increase in the future.
Ans: d. the consumer price index will increase in the future.
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Which of the following is a prerequisite for sustainable economic growth?
A) Private foreign investment B) A literate populace C) Aid provided by international agencies D) An easy monetary policy E) An abundance of natural resources
If the economy receives an influx of new workers from immigration
A) the long-run aggregate supply curve will shift to the right. B) we will move down along the long-run aggregate supply curve. C) we will move up along the long-run aggregate supply curve. D) the long-run aggregate supply curve will shift to the left.
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is Always There Wireless's profit from sales for each low-demand consumer?
A. $27.63 B. $37.63 C. $21.13 D. $28.13
Barriers to entry:
A. restrict the number of firms in an industry. B. exist only in perfectly competitive markets. C. limit output in an industry. D. do not affect the number of firms in an industry.