Which of the following is one explanation as to why the aggregate demand curve slopes downward?
A) Decreases in the price level raise the interest rate and increase consumption spending.
B) Decreases in the price level raise the interest rate and increase investment spending.
C) Decreases in the price level raise real wealth and increase consumption spending.
D) Decreases in the U.S. price level relative to the price level in other countries lower net exports.
C
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The condition, MRS1,'C' = w ', describes the representative consumer's
A) investment decision. B) consumption - savings decision. C) current period work - leisure decision. D) future period work - leisure decision.
In 1984, British Prime Minister Margaret Thatcher decided to shut down so-called uneconomic coal mines owned by the government. The National Union of Mineworkers protested, asserting that there was enough coal in the mines to continue current levels of production for years. Thatcher implicitly argued that her decision was economically sound because, at any practical level of output, for each “uneconomic” mine,
A. MC > AC. B. for every input, MPP > APP. C. MC > MR. D. AC > MC.
Simultaneous causality bias
A) is also called sample selection bias. B) happens in complicated systems of equations called block recursive systems. C) results in biased estimators if there is heteroskedasticity in the error term. D) arises in a regression of Y on X when, in addition to the causal link of interest from X to Y, there is a causal link from Y to X.
A business produces 5,00 . units per month. Costs include: $12,00 . on raw materials, $20,00 . on operators and $14,00 . on sales people. Other costs of running the factory were $50,00 . for rent and $30,00 . on other fixed overheads. In order to break even the selling price per unit will have to be:
a. $25.20 b. $29.60 c. $20.30 d. $28