Marginal benefit from a good or service is the benefit received from
consuming ________. It is measured by the most that people are willing to pay for ________.
a)one more unit of it; more of it
b)goods that you prefer; an additional unit of it
c)goods that you prefer; more of it
d)as much as is available; the total amount consumed
e)one more unit of it; an additional unit of it
Since non-market exchanges are excluded from measures of GDP, the GDP measure tends to
a)underestimate the total production of an economy.
b)place too much value on market transactions.
c)be of little use to anyone but market economists.
d)be of little significance in determining the total production of an economy.
e)overestimate the total production of an economy.
Which one of the following would cause a production possibilities frontier to shift outward?
a) a bad weather
b)a decision to fully utilize unemployed resources
c)an increase in the production of consumption goods
d)an increase in the stock of capital
e)a decrease in the population
I. enable buyers and sellers to get information.
II. are defined by economists as geographical locations where trade occurs.
III. have evolved because they facilitate trade.
Which of the above statements are correct?
a) II and III only
b) I, II and IIII
c) I and III only
d) I only
e) III only
If the price is above the equilibrium price, then
a) a surplus exists.
b) none of the good will be sold.
c) the price must rise further to reach the new market equilibrium.
d)a shortage exists.
e) price will not change; producers will cut back production until the market is in equilibrium.
In general, if country A is accumulating capital at a faster rate than country B, then country A
a) will have more unemployment than country B.
b) will have a production possibilities frontier that is shifting outward faster than country B's.
c) will soon have a comparative advantage in the production of most goods.
d)will have a higher rate of inflation than country B.
e)is using a larger proportion of resources to produce consumption goods.
If the CPI was 95 at the end of 2016 and 105 at the end of 2017, what was the inflation rate in 2017?
a) 105 percent
b) 10 percent
c) 9.5 percent
d) 10.5 percent
e) 5 percent
Complete the following sentence. Net exports equals
a)exports plus imports.
b)exports minus imports
c).imports minus exports.
d)foreign borrowing by residents of Canada minus domestic borrowing by nonresidents of Canada.
e)exports divided by imports.
Which of the following is not a factor of production?
a)175 shares of Microsoft stock
b)Wilderness areas that have yet to be developed
d)Vans used by a bakery company for deliveries
e)Timmy who is developing a production schedule for a new product
When the demand for good A increases,
a)the equilibrium price will rise, but the equilibrium quantity will decrease.
b)the equilibrium price and equilibrium quantity will decrease.
c)a surplus will result.
d)the equilibrium price will decrease, but the equilibrium quantity will increase.
e)the equilibrium price and equilibrium quantity will increase.
a) is less than marginal benefit.
b) is greater then marginal benefit.
c) equals marginal benefit.
d) is the opportunity cost of producing one more unit of a good or service.
e) ıs unrelated to the production possibilities frontier.
Nominal GDP is $1,800 billion and real GDP is $1,600 billion. The GDP deflator is