When production costs rise,
a. the short-run aggregate supply curve shifts to the right.
b. the short-run aggregate supply curve shifts to the left.
c. the aggregate demand curve shifts to the right.
d. the aggregate demand curve shifts to the left.
b
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The analysis of the behavior of individual decision-making units is the definition of
A) microeconomics. B) positive economics. C) macroeconomics. D) normative economics.
According to the Net Present Value (NPV) rule, managers choose to invest if
a. The NPV of the project is less than zero b. The NPV of the project is greater than zero c. The NPV of the project is equal to zero d. The NPV of the project is equal to the cost of capital
When the supply curve of a resource is vertical, then the return to the resource owner is
A) zero. B) partly economic rent and partly opportunity costs. C) partly economic rent and partly profits. D) pure economic rent.
The largest component of spending in GDP is
A) consumption spending. B) investment spending. C) government spending. D) net export spending.