In a perfectly competitive market, the good or service cannot differ substantially among
sellers.
Average total cost is
An increase in the capital stock causes labor productivity to
a. decrease and the standard of living to increase
b. increase and the standard of living to decrease
c. decrease and the standard of living to decrease
d. increase while the standard of living remains constant
e. increase and the standard of living to increase
If a country fixes its exchange rate below the equilibrium value,
a. the result is an excess supply of that currency
b. there will be downward pressure on the exchange rate
c. its GDP will increase
d. its GDP will decrease
e. it will have to sell its own currency in order to eliminate the excess demand
Which of the following statements about demand is correct?
The president of the Federal Reserve Bank of which district has a permanent vote in the
Federal Open Market Committee?.
a. San Francisco.
b. New York.
c. Chicago.
d. Atlanta
e. Boston.
If a lender charged a 4 percent nominal interest rate and the expected inflation rate is 1
percent, what is the difference between the real rate the lender received and the real rate
the lender expected when actual inflation ended up being 1 percent?
a. 2 percent
b. 4 percent
c. -4 percent
d. 1 percent
e. 0 percent
In Figure 3-5, a movement from point G to point H would represent
Which of the following is an important assumption in the short-run macro model?
a. Government spending depends on income.
b. Output does not change.
c. Firms do not maintain inventories.
d. Investment depends on income.
e. Prices do not change.
If the percentage change in quantity demanded is greater (in absolute value) than the
percentage change in price, then demand