If planned spending exceeds planned output in an economy, the result is a(n) _____
Fill in the blank(s) with the appropriate word(s).
unintended decrease in inventories.
You might also like to view...
Economic theory has traditionally focused on optimality in decision making.
Answer the following statement true (T) or false (F)
Find the Marginal Rate of Technical Substitution for the following production functions:
a. q = L0.5 K0.5 b. q = L0.5 + K0.5 c. q = min{K,L} d. q = L + K
If a profit-maximizing, perfectly competitive firm is making only a normal profit in the short run, then the firm is in:
a. disequilibrium. b. equilibrium where MR exceeds minimum ATC. c. equilibrium where MR equals minimum AVC. d. equilibrium where P = AFC. e. equilibrium where P = ATC
Economic theory predicts that if the government imposes a minimum wage above the equilibrium wage, then:
A. firms' labor costs will fall. B. employment will fall. C. total economic surplus will rise. D. all workers will be better off.