If output falls, which of the following could be an explanation?
a. a rise in the interest rate
b. a fall in foreign income
c. a decline in government spending
d. a rise in the interest rate, a fall in foreign income, or a decline in government spending
Ans: d. a rise in the interest rate, a fall in foreign income, or a decline in government spending
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Refer to the figure above. What is the optimal number of machines rented if the market rental price is $8 per month?
A) 20 machines B) 40 machines C) 160 machines D) 180 machines
When estimating GDP, changes in the level of inventory are calculated because:
a. it indicates the level of employment in the economy. b. it provides information about a firm's expectations. c. it is a good indicator of the competitiveness of the economy. d. it shows the level of business spending by firms. e. it determines the value of goods produced in a year but not sold in that year.
Because people are more health conscious today than ever before, the demand for French fries has steadily fallen, causing the wage rate
a. and employment of workers in the French fries labor market to fall b. and employment of workers in the French fries labor market to rise c. to rise and employment of workers in the French fries labor market to rise d. to fall and employment of workers in the French fries labor market to rise e. to fall because both the labor demand and supply curves to shift to the right
By selecting a bundle where MRS = MRT, the consumer is saying
A) "I value my last unit of each good equally." B) "I am willing to trade one good for the other at the same rate that I am required to do so." C) "I will equate the amounts spent on all goods consumed." D) All of the above.