In the AD/AS model, the aggregate demand for goods and services is composed of the purchases made by
a. households and foreigners (net exports).
b. businesses, bondholders, and foreigners (net exports).
c. businesses and governments.
d. consumers, investors, governments, and foreigners (net exports).
D
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In the above figure, at the best affordable point, the marginal rate of substitution is
A) 0.5 of a hamburger per magazine. B) 1 hamburger per magazine. C) 1.33 hamburgers per magazine. D) 8 hamburgers per magazine.
Why is it that North-South trade in manufactures seems to be consistent with the results or expectations generated by the factor-proportions theory of international trade, whereas North-North trade is not?
What will be an ideal response?
A financial asset is
a. a unit of physical capital with a positive market value b. any asset that generates a stream of income c. a share in the ownership of a productive enterprise d. a form of money e. a promise to pay future income in some form
Which of the following would NOT be considered a fixed cost of production?
A. interest payments on a loan B. insurance payments on plant and equipment C. the opportunity cost of capital D. wages paid to labor