The concept of the production function implies that a firm using resources inefficiently will
A. obtain exactly the amount that the theoretical production function shows.
B. obtain less output than the theoretical production function shows.
C. obtain more output than the theoretical production function shows.
D. not be subject to diminishing marginal product.
Answer: B
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________ spending follows a smooth trend whereas, ________ spending is more volatile and subject to fluctuations
A) Government; consumer B) Consumer; government C) Consumer; investment D) Investment; consumer
Which of the following statements is TRUE regarding the textbook used in this course?
A) The textbook presents only economic theory, so no value judgments are involved in the text. B) The textbook does not include normative statements. C) The microeconomic section of the book includes only positive analysis while the macroeconomic section includes normative analysis. D) The selection of topics included in the book involves value judgments as well as economic theory.
Monopolistically competitive markets feature heterogeneous products
a. True b. False Indicate whether the statement is true or false
Which of the following events shifts the short-run aggregate supply curve to the right?
A. An increase in government spending on military equipment B. A drop in oil prices C. An increase in price expectations D. None of the above is correct.