Which one of the following is NOT a determinant of demand?
A. future price expectations
B. prices of related goods
C. income
D. cost of inputs in production
Answer: D
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A country possesses a comparative advantage in the production of a good if
A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners. B) it possesses an absolute advantage in the production of this good. C) it is able to produce more of this good per hour than can any other country. D) all of the above.
When World War II (1941–45) came, the U.S. civilian labor force could be expanded only by about 30 percent
Indicate whether the statement is true or false
A government is currently operating with an annual budget deficit of? $40 billion. The government has determined that every ?$10 billion reduction in the amount of bonds it issues each year would reduce the market interest rate by 0.10 percentage point.? Furthermore, it has determined that every 0.10 ?(?one-tenth?) percentage point change in the market interest rate generates a change in planned investment expenditures in the opposite direction equal to ?$5 billion. The marginal propensity to consume is 0.80. ?Finally, the government knows that to eliminate an inflationary gap and take into account the resulting change in the price? level, it must generate a net leftward shift in the aggregate demand curve equal to ?$60 billion.
Assuming that there are no direct expenditure offsets to fiscal? policy, how much should the government increase? taxes? ?$40.00 billion.?(Enter your response rounded to two decimal? places.)
All of the following are examples of explicit cost a firm might incur except
A) the out-of-pocket expense to hire employees. B) taxes owed to the state government. C) the rental value of the warehouse space the company owns and uses for itself. D) the revenue a firm generates in using its resources.