Aggregate expenditure is the sum of
a. all types of spending by households and firms
b. spending and savings by households
c. spending by households and governments on final goods and services
d. spending by households, government, firms, and foreigners on final goods and services
e. all spending and saving by households, firms, and governments
D
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A decrease in the price of inputs will cause the supply curve for a product to shift to the right
Indicate whether the statement is true or false
Net migration can help fuel population growth which, in turn, provides a positive incentive for businesses to expand production and employment
Indicate whether the statement is true or false
One of the results of the knowledge economy
A) is that content matters. B) is that the information content of a good can be distinguished from the physical product. C) is that the information content of a good cannot be distinguished from the physical product. D) is that the physical features of the product has become more important.
If profits depend on both how much is produced (output) and on the level of advertising, then a profit-maximizing firm should choose the levels of output and advertising at which
A. the addition to total revenue of the last unit of advertising equals the addition to total cost of the last unit of advertising. B. the marginal revenue of output equals the marginal cost of output. C. total revenue equals total cost for both output and advertising. D. both a and b E. both b and c