Which is the smallest component of aggregate expenditure?
A) net export expenditures B) consumption expenditures
C) government expenditures D) planned investment expenditures
A
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Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of output. If the marginal cost of producing the 10th unit is $14, to maximize its profit the firm should
A) do nothing because it is already maximizing its profit. B) decrease its production. C) increase its production. D) shut down. E) increase the price it charges for its product.
The circular flow shows that GDP measures
i. total income. ii. total expenditures. iii. price changes. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Which of the following goods would be most likely to be produced by a monopoly?
a. Lotso-Sugar brand cereal b. Pepsi c. margarine d. electricity e. Ford automobiles
If a country has a negative net capital outflow, then
a. on net it is purchasing assets from abroad. This adds to its demand for domestically generated loanable funds. b. on net it is purchasing assets from abroad. This subtracts from its demand for domestically generated loanable funds. c. on net other countries are purchasing assets from it. This adds to its demand for domestically generated loanable funds. d. on net other countries are purchasing assets from it. This subtracts from its demand for domestically generated loanable funds.