There is no difference between government expenditures or outlays and government purchases or spending
a. True
b. False
Indicate whether the statement is true or false
False
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Each additional unit of output produced by a unit of labor is valued at the price of the firm's output
a. always. b. when the firm is selling in a competitive market. c. when the firm has monopoly power in the market for its output. d. when the firm has monopsony power in the market for labor.
In arriving at the quantity of output and price of its product, a company
A. chooses both price and quantity, since it understands its demand relationship. B. cannot set price or quantity; this is done by the market. C. makes two separate decisions about quantity and product price. D. can set price but quantity is determined by market demand.
One of the weaknesses in pursuing the objective of profit maximization is that it ignores
A) the timing of cash flows. B) the time-value of money concept. C) the riskiness of cash flows. D) All of the above
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower