Which of the following is NOT true at the equilibrium quantity of GDP demanded?
What will be an ideal response?
planned injections into the circular flow are less than planned leakages out of the flow
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Kelly graduates and her income increases by $25,000 a year. Other things remaining the same, she increases the quantity of clothes she buys. For Kelly, clothes are ________
A) an inferior good B) a normal good C) a substitute good D) a complement good
Between 1870 and 1910, corn and wheat
a. output showed little, if any, growth in land productivity. b. output increased dramatically, due to labor productivity increases. c. yields per acre hardly changed. d. output increased dramatically due to the effects of increased amounts of capital per worker. e. All of the above are correct.
Which of the following is an accurate statement?
a. Market allocation is illegal because it helps a business make a profit. b. Market allocation is illegal because it reduces competition. c. Market allocation is illegal because it is based on price-sensitivity. d. Market allocation is illegal because it is caused by elasticity of demand.
The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC. The current market price of an ice cream sandwich is $5.00. Taste Freeze sells 200 ice cream sandwiches. Its AVC is $8.00 and its AFC is $3.00. What should Taste Freeze do?
A. Decrease production so that AVC will decrease. B. Continue to produce because price exceeds AFC. C. Shut down and produce zero sandwiches because price is less than AVC. D. Increase production so that AFC will decrease.