If the price level in the current period is lower than what buyers and sellers anticipated,
a. profit margins will be unattractive, and firms will expand output.
b. profit margins will be unattractive, and firms will reduce output.
c. profit margins will be attractive, and firms will expand output.
d. profit margins will be attractive, and firms will reduce output.
B
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You're buying snacks for an Econ Club meeting. You've been given $100 to spend on chips and soda. You buy 25 bags of chips and 15 sodas. If bags of chips cost $3 each and soda costs $1 each, are you within your budget?
A. No, Over budget by $10 B. Yes, Under budget by $0 C. No, Over budget by $15 D. Yes, Under budget by $10
Which is largest in an advanced economy like the U.S.?
A. GDP measured by income B. GDP measures by spending C. GDP measured by production D. the previous three have the same value
Explain the concept of the circular flow.
What will be an ideal response?
Marginal revenue product is
A) marginal physical product multiplied by marginal revenue. B) marginal physical product multiplied by average variable cost of the product. C) the price of the product. D) the total revenue from the sale of the product sales.