In the above figure, what is the equilibrium level of real consumption spending?
A. $2.0 trillion
B. $3.0 trillion
C. $0.0 trillion
D. $1.0 trillion
Answer: A
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Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. If Slick Shades is producing the profit-maximizing number of sunglasses (in hundreds), what is the profit-maximizing wholesale price?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) $150
B) $120
C) $140
D) $160
Subprime mortgages are mortgage loans:
A. made to borrowers with higher than average credit scores. B. made to borrowers with low credit scores. C. that have less than prime interest rates. D. made at lower than general market interest rates.
Which of the following explains why production rises in most years?
a. increases in the labor force b. increases in the capital stock c. advances in technological knowledge d. All of the above are correct.
In the 1980s, one often-heard explanation for the low levels of net investment in the US and UK was that
a) developed economies had no incentives for acquiring new capital b) investment opportunities were limited because the already large capital stock was inducing a low marginal product of capital c) depreciation and obsolescence were so rapid that firms could barely keep up with demands for replacing existing capital d) stock market participants sought short-term capital gains from market appreciations rather than long term dividends from investment e) rapid price inflation was creating excessive investor uncertainty