The amount of income a consumer has to spend on goods and services is known as
A) purchasing power.
B) effective demand.
C) a budget constraint.
D) wealth.
Answer: C
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A firm sells a product in a purely competitive market. The marginal cost of the product at the current output level of 800 units is $3.50. The minimum possible average variable cost is $3. The market price of the product is $4. To maximize profits, the firm should
A. decrease production to less than 800 units. B. continue producing 800 units. C. increase production to more than 800 units. D. shut down.
A source of business risk is a change in
A) technology. B) consumer preferences. C) input prices. D) All of the above
Macroeconomics deals with the concept of: a. individual households. b. market structures
c. market concentration. d. economic growth.
An example of a nonrenewable resource would be:
A. Forests B. Oceans C. Gold ore D. Solar energy