The opportunity set contains:
a. a single combination of consumption that someone can afford given the prices of goods and the individual’s income.
b. all possible combinations of consumption that someone can afford given the prices of goods regardless of the individual’s income.
c. all possible combinations of consumption that someone can afford given the prices of goods and the individual’s income.
d. a single combination of consumption that someone can afford given the prices of goods regardless of the individual’s income.
c. all possible combinations of consumption that someone can afford given the prices of goods and the individual’s income.
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The relationship between a firm's advertising expenditure and its profit is studied under:
A) international economics. B) microeconomics. C) public economics. D) macroeconomics.
In order for a nation to be able to consume more in the future, it needs to
A) produce less today in aggregate and save the difference between consumption and income. B) produce more today in aggregate and save the difference between consumption and production. C) consume more today in aggregate and borrow the difference between consumption and income. D) consume less today in aggregate and save the difference between consumption and income.
In the short run, monopolistically competitive firms will maximize profits by:
A. acting like perfectly competitive firms. B. acting like monopolists. C. playing strategic games like oligopolists. D. None of these statements is true.