Refer to the information above. In which period does gross investment reach its peak?
A) 1
B) 2
C) 3
D) 4
E) 5
B
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How can an oligopolist make a profit at a given price, whereas a firm in perfect competition might suffer a loss at that same price?
What will be an ideal response?
In reference to welfare recipients, the high effective marginal tax rate on earnings
a. encourages self-sufficiency b. encourages more labor market activity c. discourages employment d. increases total family income if the marginal tax rate exceeds 100 percent e. tends to increase welfare benefits as more income is earned up to the "means-test" threshold
Which of the following is an assumption made while constructing a production possibilities frontier [PPF]?
a. Dynamic technological know-how b. Flexible resource quality c. Fixed resource quantity d. Full and efficient use of resources e. Flexible money supply
According to behavioral economics, placement of goods in retail stores is often designed to accomplish which of the following?
A. Maximize impulse buying by consumers. B. Minimize shelving costs. C. Maximize convenience for customers. D. Maximize the amount of product the store can display.