The level of aggregate expenditures in the private closed economy is determined by the
A. expenditures of consumers and business
B. intersection of the saving schedule and the 45-degree line
C. equality of the MPC and MPS
D. intersection of the saving and consumption schedules
A. expenditures of consumers and business
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
In situations where businesses who choose to discriminate because they are prejudiced are few in an industry, discrimination:
A. will be eliminated by the competitive market. B. will persist because customers will not give them patronage. C. will persist in an efficient market. D. None of these is true.
Total cost is
a. fixed cost plus variable cost b. irrelevant to decision making c. marginal cost plus fixed cost d. total product minus total input e. the additional cost associated with producing an additional unit
When an economist says a firm is earning zero economic profit, this implies that the firm
a. will be forced out of business in the near future unless market conditions change. b. is earning a zero rate of return on its assets. c. is earning as high a rate of return now as could be earned in other industries. d. has an accounting profit of zero.