Refer to Figure 12-2. What happens if the firm produces more than Q4 units?
A) It could make a profit or a loss depending on what happens to demand.
B) Its total revenue is increasing faster than its total cost.
C) Its profit increases.
D) It makes a loss.
D
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Which of the following creates difficulties in making comparisons of real GDP across nations?
A) Each nation has a different population. B) Relative prices differ sharply across countries. C) Nations produce different goods and services. D) Nations often have different languages.
Figure 3-17
Refer to . Area C represents
a.
the decrease in consumer surplus that results from a downward-sloping demand curve.
b.
consumer surplus to new consumers who enter the market when the price falls from P2 to P1.
c.
the increase in producer surplus when quantity sold increases from Q2 to Q1.
d.
the decrease in consumer surplus to each consumer in the market when the price increases from P1 to P2.
v
The sum of the components of aggregate expenditure that vary with real GDP equal
a) induced expenditures b) the MPC c) autonomous expenditures d) autonomous consumption
Which of the following statements is FALSE?
A) Economic goods are available in desired quantities at a zero price. B) A good is anything that gives satisfaction or happiness to individuals. C) Services are intangible goods such as dry cleaning, hospital care, and restaurant meal preparation. D) Wants are unlimited and include all material and nonmaterial desires.