We measure gross domestic product by multiplying the quantities of goods by their prices because it allows us to:
A. express the values of products in a common unit of measurement.
B. correct for inflation.
C. directly compare the output of one economy to that of another.
D. calculate the total number of units of goods produced in an economy.
Answer: A
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Refer to Figure 15-7. Use the figure above to answer the following questions
a. What is the profit-maximizing quantity and what price will the monopolist charge? b. What is the total revenue at the profit-maximizing output level? c. What is the total cost at the profit-maximizing output level? d. What is the profit? e. What is the profit per unit (average profit) at the profit-maximizing output level? f. If this industry was organized as a perfectly competitive industry, what would be the profit-maximizing price and quantity?
Given the information in Figure 9.7, dissaving would occur at all income levels below
A. $300 billion per year. B. $200 billion per year. C. $150 billion per year. D. $100 billion per year.
The Peruvian economy can be characterized by Equation 24.4.EQUATION 24.4:C = 400 + 0.6YdTaxes = 600Equilibrium Output = $4,000Refer to Equation 24.4. At equilibrium, saving in Peru equals
A. 960. B. 1,440. C. 1,560. D. 2,040.
Suppose the economy is initially operating at point A in the above figure. Which of the following statements is TRUE?
A) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the short run. B) An unexpected reduction in aggregate demand will cause the economy to move from point A to point C in the short run. C) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the long run. D) none of the above