It is costly to purchase a new car every two or three years because

What will be an ideal response?


a new car will depreciate rapidly in value during the first few years of use.

Economics

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In the short run, a perfectly competitive firm determines its profit-maximizing or loss-minimizing output by

a. producing at full capacity. b. equating price and marginal revenue. c. equating marginal revenue and marginal cost. d. equating average revenue and average cost.

Economics

A function that indicates the maximum output per unit of time that a firm can produce, for every combination of inputs with a given technology, is called

A) an isoquant. B) a production possibility curve. C) a production function. D) an isocost function.

Economics

Which of the following best describes the idea of a political business cycle?

a. Politicians have a bias to cut taxes and increase government spending. b. Special interests result in alternating federal deficits. c. Politicians will use fiscal and monetary policy to cause output, real incomes, and employment to be rising prior to elections. d. Good intentions of politicians influence the business cycle.

Economics

According to James Duesenberry, knowing someone's absolute income tells us everything about that person's income status

Indicate whether the statement is true or false

Economics