To correct a nominal quantity for changes in the price level, one should:
A. multiply it by a price index.
B. divide it by a price index.
C. add a price index to it.
D. subtract a price index from it.
Answer: B
Economics
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Assume that firms A and B have the same minimum efficient scale of operation and, at current production levels, both firms are incurring the same average costs of production. However, firm A's output is 5 times larger than firm B's output
How is this possible?
Economics
Corrective taxes are typically advocated to correct for the effects of
a. positive externalities. b. negative externalities. c. patents. d. All of the above are correct.
Economics