The equation total production = total income = total expenditure is called
A. the total identity.
B. Say's Law.
C. the fundamental identity of national income accounting.
D. the goods-market equilibrium condition.
Answer: C
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The relationship between the number of hours a student studies for an exam and the exam grade is most likely graphed as
A) a line sloping down from upper right to lower left. B) a line sloping down from upper left to lower right. C) a line sloping up from lower left to upper right. D) a line sloping up from lower right to upper left.
If marginal revenue exceeds marginal cost, a profit-maximizing monopolist will
a. raise price and decrease output. b. lower price and increase output. c. reduce both output and price. d. hold output constant and raise price.
Considering the spectrum of market structures and moving from pure competition to pure monopoly we can say that
A) entry barriers get lower but exit gets more difficult. B) entry becomes harder but exit becomes easier. C) entry gets harder and the number of firms dwindles. D) none of the above.
If demand is represented as Qd = 18 - 6P and supply is represented as Qs = 3 + 9P, the equilibrium quantity is
A. 1. B. 4. C. 7. D. 12.