In periods when prices are falling, on average
A) real GDP will grow slower than nominal GDP.
B) real GDP will grow faster than nominal GDP.
C) real GDP will grow as fast as nominal GDP.
D) one cannot calculate real GDP.
Answer: B
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The break-even price for a perfectly competitive firm is the price that is equal to
A) AVC. B) ATC. C) MC. D) MR
Which of the following contributes to income inequality?
a. unequal abilities b. unequal ownership of property c. discrimination d. All of these.
What is known as the set of firms that facilitate the movement of goods from producers to consumers?
A. Supply chain B. Product chain C. Distribution channel D. Marketing mix
Refer to the information. If government now spends $80 billion at each level of GDP and taxes remain at zero, the equilibrium GDP:
The following information is for a closed economy:
A. will rise to $700.
B. will rise to $600.
C. will rise to $500.
D. may either rise or fall.