In a given year the nominal growth rate is 5% with inflation and population growth rates of 1.2% and 3.8% respectively, then real growth rate of GDP per capita is:
A. 3.8%.
B. 5.0 %.
C. 1.2%.
D. 0.0 %.
D. 0.0 %.
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Suppose the elasticity of supply of land is 0 and elasticity of demand is 2. If the government imposes a 10 percent tax on land, then
A) buyers and sellers each pay 5 percent of the tax. B) buyers pay all of the tax. C) sellers pay all of the tax. D) sellers pay a smaller share of the tax than do buyers but both buyers and sellers pay some of the tax. E) buyers pay 1/2 of the tax.
Refer to Table 14-1. Let's suppose the game starts with each firm adhering to its original budget so that Godrickporter earns a profit of $6,000 and Star Connections earns a profit of $12,000
Is there an incentive for any one firm to increase its advertising budget? A) No, neither firm has an incentive to raise its advertising budget. B) Yes, Godrickporter has an incentive to increase its advertising budget, but Star Connections does not. C) Yes, Star Connections has an incentive to increase its advertising budget, but Godrickporter does not. D) Yes, both firms have an incentive to raise their advertising budgets.
If an economy is currently operating at its potential level of real GDP, an increase in aggregate demand will
A. increase the price level. B. decrease the price level. C. cause stagflation. D. produce long-run economic growth.
Excise taxes on products like gasoline and tobacco are regressive.
Answer the following statement true (T) or false (F)