If, at the full employment level of income, the amount that businesses plan to invest is greater than the amount that consumers plan to save, then
a. there will be an inflationary gap.
b. there will be a deflationary gap.
c. total demand will fall short of potential GDP.
d. the economy will suffer from increasing unemployment.
a
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Which of the following statements is TRUE for both a competitive market and a single-price monopoly?
A) The firm maximizes profit by producing the quantity at which marginal revenue equals marginal cost. B) The firm can make an economic profit in the long run. C) The price is set where the supply curve and demand curve intersect. D) The firm always produces at the lowest possible long-run average cost.
Make a case that development economics might be merely a combination of all the other subfields of economics, only applied to low-income countries
What will be an ideal response?
Refer to the graph shown. In equilibrium, total surplus is equal to:
A. 1,200. B. 1,400. C. 600. D. 2,000.
Under what conditions might government intervention in a market economy improve the economy's performance?