The GDP deflator:
a. takes government purchases into account, unlike the CPI
b. takes business investment purchases into account, unlike the CPI.
c. is generally used to adjust nominal GDP to calculate real GDP.
d. All of the above are true.
d
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In the United States, government-imposed price supports are most often associated with
A) agricultural products. B) industrial products. C) consumer electronics. D) commercial building products.
In economics, the term "shortage" means that the quantity demanded is greater than the quantity supplied at the existing price
a. True b. False Indicate whether the statement is true or false
A consumer is in equilibrium when:
a. his or her marginal utility derived from each good is maximized. b. each dollar spent on each item provides more and more satisfaction. c. each dollar spent on each item provides less and less satisfaction. d. the last dollar spent on each item provides the same additional satisfaction as that dollar would if spent on any other item. e. his or her average utility for each item is the same.
If the quantity of cookies purchased decreases by 30 percent as the result of a 15 percent increase in the price of oranges, the absolute value of the price elasticity of demand for cookies is
a. 0.25. b. 0.50. c. 1.25. d. 2.0.