Figure 9-3
?
In Figure 9-3, at $5,000 billion GDP, inventories will be
A. falling, signaling businesses to increase production.
B. accumulating, signaling businesses to increase production.
C. accumulating, signaling businesses to cut production.
D. falling, signaling businesses to cut production.
Answer: C
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If the interest rate is below the equilibrium, which of the following occurs in this market?
a. excess supply b. excess quantity supplied c. excess demand d. excess quantity demanded
A fishing boat owner sells her entire catch of 8,000 fish and maximizes profit that is equal to $4,000 . Suppose fish prices increase and she now sells 10,000 fish. If fish prices increased by $1 per fish, what do you need to know to calculate her new average total cost?
a. average fixed cost b. change in average variable cost c. change in total variable cost d. how many fish she catches e. how much profit is made
Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing
A. Taxes by more than $600 billion. B. Government spending by exactly $600 billion. C. Government spending by less than $600 billion. D. Taxes by exactly $600 billion.
Why is there often resistance to free trade?
A. Free trade does not benefit the economy as a whole. B. Specific groups may be hurt by free trade. C. Free trade usually hurts consumers. D. Free trade does not benefit the global economy.