According to the classical economists, an economy producing $10 million in goods and services
A. simultaneously generates the income necessary to purchase $10 million in goods and services.
B. could experience a permanent surplus if no one has estimated the demand for goods and services in the economy.
C. may be producing too much since the needs of people may not be this great.
D. is supplying $10 million in goods and services, but could be demanding more or less than $10 million in goods and services for a very long period of time.
Answer: A
You might also like to view...
Which of the following illustrates a burden of the national debt?
A) Future generations will have to pay lower taxes to finance the national debt. B) A large debt decreases the amount of capital, thereby decreasing future incomes. C) The current generation receives a higher level of government services. D) The current generation pays a higher level of taxes.
Refer to Figure 9-3. If there was no quota, how many pounds of peanuts would domestic producers supply?
A) 10 million B) 28 million C) 30 million D) 40 million
Acme Tools manufactures anvils, a forging tool. When the price of anvils was increased from $7 to $13, Acme Tools was willing and able to increase production from 1 to 4 units per day. Using the midpoint formula, what is Acme's price elasticity of supply for anvils?
a. 2 b. 1 c. 0.5 d. 4 e. 3.5
Esmerelda worked part-time for her mother's business without pay. Tabitha was absent from work because she had strep throat. Who is counted as "employed" by the Bureau of Labor Statistics?
a. Esmerelda but not Tabitha b. Tabitha but not Esmerelda c. both Esmerelda and Tabitha d. neither Esmerelda nor Tabitha