If the consumer price index is 200 in year 1980 and 400 today, then $600 in 1980 has the same purchasing power as （ ）today.
A. $400
B. $600
C. $1000
D. $1200
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Suppose the demand for French bread rises. ( )
A. Both producer surplus in the market for French bread and producer surplus in the market for flour rise.
Both producer surplus in the market for French bread and producer surplus in the market for flour fall.
C. Producer surplus in the market for French bread rises but in the market for flour falls.
D. Producer surplus in the market for French bread falls but producer surplus in the market for flour rises.
Thomas Robert Malthus believed that population growth would ( )
A. put stress on the economy’s ability to produce food, dooming humans to remain in poverty.
B. spread the capital stock too thinly across the labor force, lowering each worker’s productivity.
C. promotes technological progress, because there would be more scientists and inventors.
D. eventually declines to sustainable levels, as birth control improved, and people had smaller families.
You deposit $2,000 in a savings account, and a year later you have $2,100. Meanwhile, the consumer price index rises from 200 to 204. In this case, the nominal interest rate is ( ) percent, and the real interest rate is ( ) percent.
A. 1, 5
B. 3, 5
C. 5, 1
D. 5, 3
A firm is producing 20 units with an average total cost of $25 and marginal cost of $19. If it were to increase production to 21 units, which of the following must occur? ( )
A. Marginal cost would decrease.
B. Marginal cost would increase.
C. Average total cost would decrease.
D. Average total cost would increase.
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