If grazing land is used by all individuals on a free open range, they will operate until the
A. AP of the land equals the opportunity cost of the input.
B. TP of the land equals the opportunity cost of the input.
C. MP of the land equals the opportunity cost of the input.
D. MP of the land is larger than the opportunity cost of the input.
Answer: A
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When GDP = $2.5 trillion, C = $1.0 trillion, I = $0.6 trillion, G = $0.4 trillion, and NX = $0. Then
A) unplanned inventory change = -$0.5 trillion. B) equilibrium expenditure = $2.0 trillion. C) aggregate planned expenditure = $1.6 trillion. D) unplanned inventory change = $0.5 trillion. E) aggregate planned expenditure = $2.5 trillion.
According to the text, the highest 20 percent of U.S. income households earn about what percentage of total income today?
A) 10 percent B) 20 percent C) 50 percent D) 99 percent
Which of the following observations is true?
a. Free markets will achieve all of society's goals. b. The ability to buy goods is divided equally among consumers. c. The market deals with efficiency in production through the profit motive. d. The market system encourages firms to use inputs wastefully.
In which of the following occupations would employees be organized into craft/trade unions:
A. Hotel employee B. Restaurant worker C. Salesperson D. Plumber