External shocks can cause economic forecasts to become invalid.
Answer the following statement true (T) or false (F)
True
An external shock will not be built into a forecast because such events are rarely anticipated.
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A higher saving rate leads to faster growth because
A) more saving produces greater additions to capital per hour of labor, raising real GDP per person. B) capital would wear out faster. C) people could consume more of an economy's output. D) population growth would accelerate.
If a firm is a profit maximizer and faces positive marginal costs,
A) there is a natural limit to the size of the firm, where MR = 0. B) there is no natural limit to the size of the firm; it can be as large as it wants to be. C) there is a natural limit to the size of the firm, where MR > 0. D) there is no natural limit to the size of the firm, hence the need for government regulation.
Graphically, an increase in the market demand for coffee is shown by:
a. a rightward movement along the market demand curve for coffee. b. a rightward shift in the market demand curve for coffee c. a leftward movement along the market demand curve for coffee. d. a leftward shift in the market demand curve for coffee.
Producer surplus is the difference between what the producer receives for a good or service and what the producer is willing to receive
a. True b. False Indicate whether the statement is true or false