What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?
a. capital
b. consumption
c. investment
d. costs
c
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Refer to Figure 12-16. Which panel best represents the perfectly competitive organic produce market in which firms are breaking even, economically, organic produce is considered a normal good, and the average income level of consumers is rising?
A) Panel A B) Panel B C) Panel C D) Panel D
According to Okun's law, if full-employment output is $5000 billion, then each percentage point of unemployment sustained for one year reduces output by
A) $50 billion. B) $100 billion. C) $150 billion. D) $200 billion.
Refer to the graph below for a monopoly. Assuming this were a perfectly competitive market, then the price and quality would be shown at the point of intersection between the
a. MC and AR curves.
b. MC and MR curves.
c. ATC and AR curves.
d. MC and ATC curves.
If both Real GDP and the general price level fell following the September 11th terrorist attack,
A. the negative aggregate supply shock was smaller than the negative aggregate demand shock. B. both the aggregate supply shock and the aggregate demand shock must have been, ironically, positive. C. the aggregate supply shock was negative, but the aggregate demand shock must have been positive. D. the negative aggregate supply shock was larger than the negative aggregate demand shock.