The explicit costs of an item include all of those things that must be forgone to acquire that item
a. true
b. false
Answer: b. false
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The condition in circular-flow models whereby firms purchase all the goods not purchased by households is that
A) inventory investment is zero. B) saving is zero. C) fixed investment is zero. D) consumption equals investment. E) investment equals saving.
Use the following statements to answer this question. I. To maximize profit, a firm will advertise more when the advertising elasticity is larger. II. To maximize profit, a firm will advertise more when the price elasticity of demand is smaller
A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
The majority of union members in the United States belong to unions that are:
A. affiliated with the United Workers of America (UWA). B. affiliated with the AFL-CIO. C. independent unions that are not affiliated with the AFL-CIO. D. growing rapidly in membership.
The fact that it takes time for government to take action, even after a problem has been diagnosed, is one reason for the occurrence of:
A. inside lags. B. outside lags. C. crowding out. D. the multiplier effect.