If nominal GDP increases this year, then real GDP
A) could either increase or not change but cannot decrease.
B) must decrease.
C) must increase.
D) must not change.
E) could increase, decrease, or not change.
E
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Rent seekers are those who seek to
a. use the government to protect their existing property interests b. use the government to change the rules of the market game in their favor c. convert public land into private land d. convert public resources into private resources e. maximize their own private gains from trade
An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to produce cars and trucks. If the price of trucks increases, the automobile manufacturer would not _____
a. pay a lower wage rate to labor b. increase truck production c. hire more workers d. increase capital used in production e. increase land used in production