The owners of capital resources are compensated according to the
a. purchase price of the capital stock.
b. marginal product of capital.
c. value of the marginal product of capital.
d. absolute level of production of final goods and services.
c
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If weak aggregate demand is pushing the economy into recession, which of the following must be true?
A) The economy is at an equilibrium that is on the long-run Phillips curve. B) The economy is at an equilibrium that is not on the long-run Phillips curve. C) Contractionary monetary policies will push the economy back to the long-run Phillips curve. D) The economy is at an equilibrium that is on the long-run aggregate supply curve.
Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She buys 8 units of Alpha and 12 units of Beta. The marginal utility of Alpha is 40 and the marginal utility of Beta is 20. This indicates that:
A. Ellie should make no change in consumption B. Given another dollar, Ellie should buy an additional unit of Beta C. In order to maximize utility, Ellie should buy more of Beta and less of Alpha D. In order to maximize utility, Ellie should buy more of Alpha and less of Beta
The aggregate demand curve plots
A) total expenditures against the level of employment. B) desired expenditures against production. C) employment against the price level. D) planned expenditures against the price level.
An HMO hires radiology services from India to cut costs. If all else remains equal, this will
A) decrease the financial account. B) decrease the balance of trade. C) increase the current account balance. D) decrease net exports.