Where the planned expenditure and the 45-degree lines intersect, the economy is ________ equilibrium, with unplanned inventory investment equal to ________
A) in, zero
B) out of, zero
C) in, planned inventory investment
D) in, autonomous planned expenditure
E) out of, autonomous planned expenditure
A
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A firm in a price-taker market:
a. must take the price that is determined in the market. b. must reduce its price if it wants to sell a larger quantity. c. must be large relative to the total market. d. can exert a major influence on the market price.
Suppose the cafeteria at a university puts healthy foods such as fruit and yogurt in an easily accessible location but places junk foods somewhere slightly less prominent. This would be an example of a(n):
A. nudge. B. push. C. irrational behavior. D. incentive compatibility problem.
When Firm X doubled its output, it was found that its cost per unit declined by 10 percent. It can be concluded that
A. the firm was facing external scale diseconomies. B. the firm was operating on the inelastic portion of the demand curve. C. the firm was enjoying internal scale economies. D. the marginal cost of production at the initial output level was constant.
In the classical model, a temporary increase in government purchases causes the new equilibrium to have
A. more employment and a lower real wage than before. B. less employment and a higher real wage than before. C. more employment and a higher real wage than before. D. less employment and a lower real wage than before.