According to Say's Law, supply creates its own demand
a. True
b. False
A
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What is accounting profit?
A) gross revenue minus explicit and implicit costs B) the same as economic profit C) gross revenue minus implicit costs D) gross revenue minus explicit costs
Permanent price differentials among resources are explained by which of the following reasons?
a. movement from lower pay to higher pay b. movement from no benefits to higher benefits c. differences in the time and money involved in developing the necessary skills d. none of the above explain permanent price differentials in resources
A country has national saving of $80 billion, government expenditures of $40 billion, domestic investment of $50 billion, and net capital outflow of $30 billion. What is its supply of loanable funds?
a. $30 billion b. $40 billion c. $50 billion d. $80 billion
Exhibit 2-15 Production possibilities curve
In Exhibit 2-15, if the economy moves from point L to point M, the opportunity cost of producing 10 more capital goods is:
A. 40 fewer consumption goods because at point L, 20 capital goods and 40 consumption goods are produced. B. 25 fewer consumption goods because at point M 30 capital goods and 25 consumption goods are produced. C. 15 fewer consumption goods because to go from 20 capital goods to 30 capital goods, the economy must go from 40 consumption goods to 25 consumption goods. D. 15 more consumption goods because to go from 30 capital goods to 20 capital goods, the economy must go from 25 consumption goods to 40 consumption goods.