If the demand for a good increases, it is likely that the demand for the factors of production used as inputs will:
A. increase.
B. stay the same.
C. decrease.
D. None of these statements is true.
Answer: A
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Use the following graph to answer the next question.
The size of the multiplier associated with changes in government spending in this economy is
A. 3.50. B. 5.00. C. 6.67. D. 2.00.
A Gini coefficient of 0 represents perfect equality in the distribution of income
Indicate whether the statement is true or false
When an economy is operating efficiently, which is TRUE?
A) All resources are fully employed. B) It would be possible to increase the output of 1 good without decreasing the output of the other. C) Resources are not fully employed or current technology is not being fully utilized. D) This economy is operating to the right of its production possibilities curve (PPC).
A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and rent $250,000/month. If the firm produces 1,000,000 units a month, the total costs equal
a. $125,250,000 b. $170,250,000 c. $125,050,000 d. $170,050,000