Refer to Figure 12-6. If Jason maximizes his profit he will produce the output rate indicated by point ________ and his average profit will equal ________
A) a; $3 B) b; $3 minus ATC at point b
C) d; $3 minus ATC at point d D) e; $3 minus ATC at point e
C
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What is the relationship between the bowed out shape of the production possibilities frontier and the increasing opportunity cost of a good as more of it is produced?
What will be an ideal response?
National debt can be defined as:
a. the total money supply in the economy. b. the total stock of government bonds outstanding. c. the difference between real GDP and potential GDP. d. the change in fiscal deficit that results from an increase in government spending. e. the total volume of private investment in the country.
Cost is always a forgone
What will be an ideal response?
If the economy is on the steep portion of the AS curve and government spending increases, ________ crowds out ________.
A. planned investment; consumption B. government spending; planned investment C. planned investment; government spending D. consumption; planned investment