In the above figure, when income is zero, household expenditures equal
A) 0.
B) $1000.
C) $4000.
D) $8000.
D
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Suppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year
Which data do you look at? How does the economy behave at the onset of a recession?
A characteristic found only in oligopolies is
A) independence of firms. B) break-even level of profits. C) products that are slightly different. D) interdependence of firms.
An indexed equity mutual fund
a. is directly tied to either the consumer price index or the GDP deflator. b. is a fund that hires a manager who will try to pick the stocks that will increase most in value in the future. c. merely holds stocks in the same proportion as they exist in a broad stock market index like the Standard & Poor's 500. d. will have high operating costs because these funds engage in a substantial amount of stock trading.
Consider a graph of a production possibilities curve. If a producer is operating at an inefficient point, then that producer:
A. must be at an unattainable point on the production possibilities curve. B. can produce more of one good without producing less of the other good. C. must be specializing in activities for which it has a comparative advantage. D. cannot produce more of one good without giving up some of the other good.