Equilibrium GDP will not exist where output exceeds aggregate demand because businesses will notice that
A. their profits are positive.
B. inventory stocks are building up.
C. inventory stocks are being depleted.
D. their level of depreciation is rising.
Answer: B
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Marginal social cost is equal to
A) the amount people who buy a product pay for another unit. B) whatever producers have to pay to produce output. C) the sum of marginal private cost and the marginal external cost. D) the average of marginal private cost and the marginal external cost. E) None of the above answers is correct.
In 1962, Michael Harrington argued in The Other America that there was chronic, severe poverty in America
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of product differentiation based on the location from which a product is sold?
a. An electronic company advertising its new range of slim smartphones b. A cellphone service provider offering free access to a particular website c. A car mechanic opening his new workshop near a busy highway d. An electronic company offering a warranty of 5 years for its air conditioners
In addition to other factors, the increased use of technology and the reduced costs of information transfer from local office to corporate headquarters have
A. reduced the need for middle managers and increased the scope of local decision-making authority. B. only increased the costs of decentralization. C. shown that technology has little impact on the centralization issue. D. significantly increased the need for centralized decision making.