Govts want savings to increase, ____
a. so that loan interest rates will increase
b. so that spending on business investment will increase
c. so that immigration will increase
d. all
Ans: b. so that spending on business investment will increase
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Based on the figure above, curve A is the firm's
A) marginal cost curve. B) total cost curve. C) average total cost curve. D) total variable cost curve. E) total fixed cost curve.
The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. What is the efficient quantity of steel?
A) 0 tons B) 2 tons C) 4 tons D) 8 tons
Which of the following statements is false? In the circular flow model:
A) the funds needed to finance investment spending come from the saving of households. B) GDP can be measured either by the income received or by the expenditures made. C) factor payments are made to business firms. D) consumption expenditures are made by households.
According to Keynes, market economies:
A. quickly recover after they experience a significant decline in aggregate demand. B. are constantly experiencing a significant declines in aggregate demand. C. never experience significant declines in aggregate demand. D. may recover slowly after they experience a significant decline in aggregate demand.