According to the graph shown, what does Y on the x-axis stand for?
A. Current level of GDP
B. Observed level of output
C. Full employment level of output
D. Future target goal for output
Answer: C
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The U.S. Constitution stipulates that when government uses its takings powers to acquire land for a project,
A) the government must own and operate the completed project. B) the government can resell the land to a private developer. C) the government must turn over the land to state or city governments. D) none of the above
In the above figure, the short-run aggregate supply curve is SAS1. If technology advances, there is
A) an upward movement along SAS1. B) a downward movement along SAS1. C) a shift to SAS0. D) a shift to SAS2.
One way the government can introduce competition into a monopoly industry is to:
A. break up the company along different stages of the production process. B. split it vertically. C. split it horizontally. D. All of these statements are true.
You are responsible for purchasing 25 used cars for your company. Star Brand cars costs $7,500 and Diamond Brand cars cost $6,000. Based on experience, you believe that 20% of Star Brand cars are lemons (low quality) while 40% of Diamond Brand cars are lemons (low quality). You are willing to pay $5,000 for a known lemon and $12,000 for a known plum. Which brand do you purchase?
A. Star Brand B. Diamond Brand C. You are indifferent between brands. D. You don't buy either brand.