Assume That Equilibrium GDP (Y) Is 5,000

question 11

Multiple Choice

Assume that equilibrium GDP (Y) is 5,000. Consumption is given by the equation C = 500 + 0.6 (Y - T) . Taxes (T) are equal to 600. Government spending is equal to 1,000. Investment is given by the equation I = 2,160 - 100r, where r is the real interest rate in percent. In this case, the equilibrium real interest rate is:

• A)5 percent.
• B)8 percent.
• C)10 percent.
• D)13 percent.

Understand the concept of social inequality and its effects in society.

Describe the distribution of wealth and income in different societies.

Identify different social classes and strata within societies.

Recognize the historical and cultural contexts that influence social stratification.

---

Definitions:

Pure Monopoly

A market structure characterized by a single seller selling a unique product in the market, resulting in significant control over pricing and market supply.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing them some power to set prices.

Oligopoly

A distinct form of market where only a few companies have significant influence over industry prices and competition.

Herfindahl Index

A measure of market concentration used to determine the competitive landscape by summing the squares of the market shares of all firms in the industry.