An economy produces two goods, x and y. A year ago the price of x was $4 and the price of y was $6 . Today the price of x is $8 and the price of y is $10 . What happened to the nominal and the real value of good x? What happened to the nominal and real value of good y?

If marginal cost exceeds marginal revenue, a profit-maximizing firm should

a. expand output until marginal cost equals marginal revenue. b. expand output until marginal revenue equals price. c. reduce output until marginal cost equals marginal revenue. d. reduce output until price equals average total cost.

A political candidate running in a two-person race is likely to occupy

A) an extreme end of the political spectrum and hope that his or her opponent will gravitate toward the middle so that he or she can then claim that his or her opponent has flip-flopped. B) the middle of the political spectrum and label his or her opponent as an extremist (either liberal or conservative). C) a position somewhere between the middle of the political spectrum and an extreme end so that he or she can move either way shortly before the election. D) one extreme end of the political spectrum early in the race and the other extreme end near the end of the race.