If in a year there is a positive inventory investment, then final sales
A. equal GDP.
B. are less than GDP.
C. are zero.
D. exceed GDP.
Answer: B
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The term "capital," as used in macroeconomics, refers to
A) the plant, equipment, buildings, and inventories of raw materials and semi-finished goods. B) financial wealth. C) the sum of investment and government purchases of goods. D) investment.
The idea that rational employers think at the margin is central to understanding how many units of labor they choose to employ
a. True b. False Indicate whether the statement is true or false
Figure 3-15
Refer to . Which area represents producer surplus when the price is P1?
a.
BCE
b.
ACF
c.
ABED
d.
DEF
Exhibit 8-15 Short-run cost curves for E-Z Care lawn mowing company
In Exhibit 8-15, suppose the market price of mowing lawns falls to $10 per lawn. In this situation, E-Z-Care will:
A. permanently exit the industry. B. shut down its operations, at least in the short run. C. continue to mow lawns in the short run despite its economic losses. D. earn a normal profit.