Producers are willing and able to offer greater quantities for sale at higher prices because
a. they have the incentive to pay the increasing opportunity cost of resources to attract them from alternative uses
b. they will decrease their profits by expanding production at higher prices
c. the government orders them to do so
d. lower prices attract new firms, which have higher costs of production
e. they hire superior quality, higher-priced resources as production expands
A
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Since 1960, infant mortality rates in the United States have
A) dropped more than 75%. B) dropped by about 20%. C) risen slightly. D) dropped by less than 5%.
Over time, countries grow in a fashion so that their production possibility frontiers always retain the same shape
Indicate whether the statement is true or false
Everything else held constant, a decrease in government spending ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
Which of the following best describes the simple spending multiplier? a. It shows the magnified change in planned aggregate spending that arises from a change in output
b. It shows the magnified change in equilibrium output demanded that arises from a change in income. c. It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output. d. It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending. e. It shows the change in planned aggregate spending that arises from a change in real output.