If the price of a good falls, then the equilibrium consumption of that good:
A. increases if it is an inferior good.
B. remains the same.
C. decreases if it is a normal good.
D. None of the statements is correct.
Answer: A
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In the second quarter (three-month period) of 2016, U.S. nominal GDP increased but U.S. real GDP declined. What can we conclude?
A. Real wages declined by more than real GDP. B. Nominal income declined by more than personal income. C. The price level fell by more than real GDP. D. The price level rose by more than nominal GDP.
A country that has had success with export-led growth policy is:
A. North Korea. B. South Korea. C. Russia. D. Liberia.
Other things the same, in which case is the quantity produced the highest?
a. There is one firm. b. There are two firms that successfully collude. c. There are two firms in Nash equilibrium. d. There are a very large number of firms.
It is important that sales represent _________________________: that is, a fairly negotiated transaction that occurred under typical market conditions
Fill in the blank(s) with the appropriate word(s).