According to the classical model, the income generated by production is
A) always insufficient to purchase all the goods and services produced.
B) enough to purchase all the goods and services produced.
C) fully spent on savings.
D) enough to meet the needs of everyone in society.
B
You might also like to view...
A company that retains a high bond rating during a recession in which many other companies see their bond ratings cut will experience
A) an increased flow of funds into the market for its securities. B) an increased demand for its securities, resulting in a higher expected return. C) a decreased demand for its securities, resulting in a lower expected return. D) a decreased flow of funds into the market for its securities.
Persistent deficit after 1980 was almost entirely due to
A) higher share of expenditures in GDP. B) lower tax revenue. C) lower share of expenditures in GDP. D) Higher tax revenue.
A cost function has economies of scale if
A) average fixed costs fall as production increases. B) total costs fall as production increases. C) the average total cost falls as production increases. D) it is less expensive to produce goods jointly rather than separately.
Refer to the graph shown. A consumer would be expected to change consumption from point A to point B in response to a(n):
A. decrease in the price of soda. B. increase in the price of chocolate bars. C. increase in the price of soda. D. increase in income.