When an economy's production capacity is expanding:
A. nominal GDP, but not necessarily real GDP, is rising.
B. net exports is always a positive amount.
C. DI exceeds PI.
D. gross domestic investment exceeds depreciation.
D. gross domestic investment exceeds depreciation.
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Which of the following is TRUE regarding the long run for a firm in monopolistic competition?
A) P = MC = ATC B) P = MC = MR C) ATC = MC = MR D) P = ATC
Which of the following is always true for a perfectly competitive firm?
a. Marginal revenue is below price. b. Marginal revenue exceeds price. c. The market demand curve is a horizontal line. d. Price equals marginal revenue. e. The market supply curve is a horizontal line.
In a market economy, we know that a resource has become scarcer when
a. its price rises relative to other prices. b. it is non-renewable and some of it is used. c. people search for substitutes. d. All of the above are correct.
Which of the following statements is correct?
A) TC = TFC + TVC B) TC = average product + marginal product C) TC = TFC - TVC D) TC = average physical product - marginal physical product