If both real GDP and nominal GDP of a country increased at the same rate in a particular year, which of the following is most likely to have taken place?
a. Output increased and the price level increased
b. Output increased and the price level decreased
c. Output decreased and the price level increased
d. Output decreased and the price level decreased
e. Output increased and the price level remained constant
e
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In the above figure, which wage rate will maximize union members' income?
A) W1 B) W2 C) W3 D) W3 - W1
The expression, "There's no such thing as a free lunch," implies that
a. everyone has to pay for his own lunch. b. the person consuming a good must always pay for it. c. opportunity costs are incurred when resources are used to produce goods and services. d. no one has time for a good lunch anymore.
Cross-price elasticity of demand measures
a. elasticity of demand at the intersection of the supply and demand curves b. elasticity of supply at the intersection of supply and demand curves c. the relative elasticity of supply and demand at the intersection of the two curves d. the relationship between the demand for one good and the price of another e. the relationship between the demand for one good and the supply of another
In which case will the government collect more tax revenue?
A. 40% tax rate and $40,000 average income B. 90% tax rate and $10,000 average income C. 4% tax rate and $80,000 average income D. 20% tax rate and $90,000 average income