Which aggregate expenditure categories are influenced by the level of real GDP?
A) investment and government expenditures on goods and services
B) consumption and government expenditures on goods and services
C) consumption and investment
D) imports and exports
E) consumption and imports
E
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Perfect price discrimination will lead a firm to produce up to the point where price equals marginal cost, the efficient level of output
Indicate whether the statement is true or false
Montesia is a country that produces kiwis. After the market for kiwis in Montesia is opened to international trade, there is a decrease in the domestic quantity supplied of kiwis and an increase in the domestic quantity demanded of kiwis. Montesia should: a. import kiwis
b. export kiwis. c. not participate in trade. d. impose a tariff on kiwis.
A company is called insolvent when a. there is a rapid decline in an asset price
b. its debts exceed the value of its assets. c. there is a decline in confidence in the company. d. it experiences a credit crunch.
Kate receives two free passes to the waterpark for her birthday. She's not a huge fan of waterparks, and, therefore, would not buy such tickets for their face value of $90. Kate decides to use the tickets. This type of behavior is explained with the concept of:
A. the implicit cost of ownership. B. ignoring sunk costs. C. the fungibility of money. D. None of these.