An increase in intended investment leads to a higher equilibrium level of national income
Indicate whether the statement is true or false
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Samia has decided that with the two hours in between classes she can do one of 3 things. She has ranked her choices, from highest to lowest as, (1 ) chat with her friends, (2 ) study economics or (3 ) take a nap
The opportunity cost of chatting with her friends is A) the combined value of studying economics and taking a nap. B) the value of studying economics, the next best use of time. C) the value of chatting with her friends. D) zero since she does not pay her friends to talk to her.
The optimal allocation of resources is found:
A. where MB = MC. B. at every point along a production possibilities curve. C. where the marginal benefit is at its greatest. D. where the marginal cost is at its lowest.
If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then:
A. the selling price for this firm is above the market equilibrium price. B. new firms will enter this market. C. some existing firms in this market will leave. D. there must be price fixing by the industry's firms.
Inflation means
A. Specific prices are rising, and relative prices are falling. B. Both relative prices and average prices are rising. C. Average prices are rising, but it is not certain what is happening to relative prices. D. Relative prices are rising, but it is not certain what is happening to average prices.