Economic cost is:
A. Equal to explicit costs minus implicit costs.
B. The same as dollar costs.
C. Equal to the accounting cost minus implicit costs.
D. The value of all resources used to produce a good or service.
Answer: D. The value of all resources used to produce a good or service.
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By definition, disposable income is equal to
A) consumption minus saving. B) consumption plus saving. C) consumption plus investment. D) investment plus saving.
In the new Keynesian model, if an aggregate demand increase is unanticipated, then ________
A) aggregate demand will not change B) short-run aggregate supply will shift up immediately C) short-run aggregate supply will shift down immediately D) there is no immediate effect on the short-run supply curve
Given that India and Sri Lanka are trading partners, if Sri Lanka experiences a recession, the aggregate demand curve of India will shift to the right
a. True b. False Indicate whether the statement is true or false
Which one of the following states a central element of the economic way of thinking?
What will be an ideal response?