The costs in time and other resources that parties incur in the process of agreeing to and carrying out an exchange of goods or services are called
A) selling costs. B) exchange costs. C) transactions costs. D) implicit costs.
C
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Why is the long-run aggregate supply curve a vertical line?
A) At that level of real GDP, the production costs are at their lowest level. B) At that level of real GDP, production costs have fully adjusted to price changes. C) At that level of real GDP, the unemployment rate is 0 percent. D) At that level of real GDP, the inflation rate is 0 percent.
Refer to Figure 4.5. If you know that at least 8 students will choose Solid, you should choose
A) Solid. B) Dash. C) either Solid or Dash, as your payout will be the same either way. D) You need to know what the 9th student will choose before you will know your best choice.
The Federal Trade Commission (FTC) was established to investigate unfair and deceptive business practices
a. True b. False Indicate whether the statement is true or false
In an economy with lump-sum taxes and no international sector, assume that the aggregate supply curve is horizontal. If the marginal propensity to consume is equal to 0.8, which of the following will necessarily be true?
(a) The average propensity to consume will be less than the marginal propensity to consume (b) The government expenditure multiplier will be equal to 5 (c) A $10 increase in consumption spending will bring about an $80 increase in disposable income (d) Wealth will tend to accumulate in the hands of a few people (e) The economy will be running a deficit, since consumption expenditure exceed personal saving