Which of the following is a factor of production for Cathy's Cookies?
a) Productivity
b) Flour
c) Cookies
d) Money
Answer: b) Flour
You might also like to view...
Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other
A) differences B) utility C) similarity D) elasticity
The domestic currency value of the return on a foreign investment when the foreign currency proceeds are sold in the forward market, is defined to be the
A) covered return. B) uncovered return. C) forward return. D) Both B and C.
Assume the economy is experiencing an inflationary gap, Keynesian economists believe that:
a. flexible wages will restore full employment. b. the Federal Reserve should lower the interest rate. c. the federal government should decrease spending to shift the aggregate demand curve leftward. d. the federal government should increase spending to shift the aggregate demand curve rightward.
In Figure 1 above if the economy were at Y1 then we would expect there to be:
A. no change in production since PAE = actual output. B. an increase in production since PAE < actual output. C. an increase in production since PAE > actual output. D. a decrease in production since PAE > actual output.