If consumption is greater than income, saving must be negative.
a. true
b. false
a. true
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Using graphs to illustrate the concepts, absolute advantage
A. is shown with differences in slope of a production possibilities curve; comparative advantage is shown with a lower curve. B. requires a very steep curve; comparative advantage requires a curve with a shallow slope. C. on one good requires that the slope of the production possibilities curve be steeper for that good. D. is shown with a higher production possibilities curve; comparative advantage is shown with differences in slope of the curves.
Firms that operate in perfectly competitive markets try to
a. maximize revenues. b. maximize profits. c. equate marginal revenue with average total cost. d. All of the above are correct.
The sticky-wage theory of the short-run aggregate supply curve says that when the price level is lower than expected,
a. production is more profitable and employment rises. b. production is more profitable and employment falls. c. production is less profitable and employment rises. d. production is less profitable and employment falls.
Danica is running for office. A survey showed that most voters in her district describe themselves as conservative but not extremely conservative. Her opponent is running as a moderate. How should Danica portray her opponent to get the most votes and win the election?
a. as a liberal b. as a conservative c. as slightly more conservative than she is d. as slightly less conservative than she is