Investment spending will increase when
What will be an ideal response?
business cash flow increases
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Refer to Scenario 16.1. Initially Sam and Sally are allocated 10 cheese doodles and 10 pretzels each. Which of the following statements are TRUE?
A) The initial allocation is Pareto optimal as it is equitable. B) The initial allocation is Pareto optimal as Sally and Sam have equal amounts of both goods. C) The allocation is not Pareto optimal. An allocation that gave Sam all of the cheese doodles and Sally all of the pretzels would make both of them better off. D) The allocation is not Pareto optimal. An allocation that gave Sam four of the cheese doodles and sixteen of the pretzels (leaving Sally the rest) would make both of them better off.
A rightward shift in the money supply curve is likely to produce a rightward shift in the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:
A. accounting profits will be zero. B. accounting profits must be positive. C. economic profits are negative. D. economic profits may be positive.
Recall the Application about the opportunity cost of an entrepreneur to answer the following question(s).Recall the Application. Which of the following would be included as an opportunity cost of renting your house through Airbnb?
A. opportunity cost of time sending emails B. opportunity cost of cleaning the house C. fees to Airbnb D. All of these are part of the costs.