Measuring expenditures and income with the price level held constant, so that any changes in these values represent changes in the actual amount of goods, services, and income is denoted in ________ terms. A) nominal B) real C) constant dollar D) all of the above ANSWER B
Date: September 10th, 2020
Economies of scale are illustrated by: A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) a downward-sloping short-run average total cost curve. ANSWER A
Date: September 10th, 2020
Assume the marginal revenue from each additional unit of a good sold is 0. In this case, we can conclude that demand for the good is: A) unit elastic B) perfectly elastic. C) perfectly inelastic. D) relatively inelastic. ANSWER B
Date: September 10th, 2020
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization? A) When the amount of revenue generated by each member of the cartel is the same. B) When there are no economies […]
Date: September 10th, 2020
The vital link between the real and monetary sectors of the economy is the: A) price level. B) interest rate. C) balance of payments. D) budget deficit. ANSWER B
Date: September 10th, 2020
According to the circular flow model, all else constant, an increase in government spending should cause an increase in spending, income, and production in the economy. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Diseconomies of scale are illustrated by: A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) an upward-sloping short-run average total cost curve. ANSWER C
Date: September 10th, 2020
The sum of personal consumption expenditure, investment expenditure, government expenditure, and net export expenditure on the total amount of real output in the economy in a given period of time is called: A) potential GDP. B) aggregate expenditure. C) real money balances. D) none of the above. ANSWER B
Date: September 10th, 2020
Long-run macroeconomic policies concentrate on: A) minimizing fluctuations around potential GDP. B) maximizing fluctuations around potential GDP. C) incentives for increasing productivity and the potential output of the economy. D) none of the above. ANSWER C
Date: September 10th, 2020
Assume a group of firms has formed a cartel and the cartel is in engaged in joint profit maximization. As such, each firm, acting in its own interests, has an incentive to expand production up to the point at which: A) its marginal cost equals the marginal revenue earned by the cartel. B) its marginal […]
Date: September 10th, 2020
