Explain the difference between actual output and potential output. What does the difference between these variables represent?
What will be an ideal response?
Potential output represents the long-run level of output that is potentially achievable if all resources are used to their full utilization. Because potential output is a long-run concept, the difference between actual and potential output represents cyclical, or short-run, deviations in output from what is potentially achievable.
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Product differentiation means
A) making a product that has perfect substitutes. B) making a product that is entirely unique. C) the inability to set your own price. D) making a product that is slightly different from products of competing firms. E) making your demand curve horizontal.
If households believe their incomes will fall in the future, the result is a
A) rightward shift in the supply of loanable funds curve. B) leftward shift in the supply of loanable funds curve. C) movement along the supply of loanable funds curve. D) movement along the demand for loanable funds curve.
The price elasticity of demand of science fiction novels is 2.3. Demand is
a. inelastic. b. unit elastic. c. elastic. d. elasticity.
Why is the scrotum located outside the body?
A. The atmospheric temperature is lower and is essential for sperm production B. The vas deferens provides a longer pathway for the maturation of sperm C. To keep the testes away from the infective potential of the digestive system D. To protect the testes from abdominal trauma