In economic analysis marginal analysis is used to:
a. make an either-or decision.
b. determine which costs are sunk costs.
c. decide how much of something is the optimal amount.
d. convince others that the costs of a certain activity do not matter
Ans: c. decide how much of something is the optimal amount.
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The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment. B) the direct relationship between the interest rate and the value of planned investment. C) the indirect relationship between taxes and government spending. D) the direct relationship between taxes and government spending.
If the number of stages between input production and final product production increases then:
a. GDP and GNP both rise. b. GDP and GNP both fall. c. GDP and GNP both remain unchanged. d. GDP rises and GNP falls. e. GDP falls and GNP rises.
Which one of the following statements is the most accurate?
A. An increase in disposable income worsens the current account. B. An increase in disposable income improves the current account. C. An increase in disposable income does not affect the current account. D. An increase in income worsens the current account.
The income distribution of the United States is basically the nation's answer to the
A. WHAT question. B. FOR WHOM question. C. HOW question. D. WHAT, HOW, and FOR WHOM questions.