A friend says, "I really, really need a new car." As an economist, you're thinking
A) Right! Everyone needs a new car.
B) This is an example of how objectively undefinable needs are. Many would argue that this friend could get along just fine with a reliable used car.
C) If this friend says she needs a new car, then we must all agree that a new car is a need and not just a want.
D) that a new car can only be considered a need if at least 51% of the public agrees.
Answer: B
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
A perfect competitor will operate at peak efficiency only in the ___________.
Fill in the blank(s) with the appropriate word(s).
In an economy open to international trade ________
A) saving equals investment in equilibrium B) saving is the difference between net exports and investment C) saving equals investment as long as the economy has no exports D) saving equals investment as long as NX=0 E) none of the above
The MR schedule can be obtained from the TR schedule by:
a. adding two successive values in the TR schedule. b. subtracting the succeeding TR value from the preceding TR value. c. subtracting the preceding TR value from the succeeding TR value. d. multiplying two successive TR values. e. dividing the succeeding TR value by the preceding TR value.