The quantity of aggregate output demanded will fall if
A. the price level increases.
B. net taxes are reduced.
C. government spending increases.
D. Aggregate supply increases.
Answer: A
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Holding other factors constant, a technological improvement that increases the marginal product of capital will:
A. decrease national saving. B. decrease investment. C. increase investment. D. increase national saving.
The steeper an isoquant is
A) the greater is the marginal product of labor relative to that of the marginal product of capital. B) the greater is the substitutability between capital and labor. C) the greater is the need to keep capital and labor in fixed proportions. D) the greater is the level of output.
Refer to Figure 2-9. The opportunity cost of obtaining 10 additional toasters by moving from point B to point A is
a. 10 toothbrushes. b. 20 toothbrushes. c. 30 toothbrushes. d. zero, since the economy has the additional resources to produce 10 additional toasters.
The following image shows the demand curve for neckties. At point a, consumer surplus is _____.
a. ?$5 b. $8? c. ?$20 d. ?$26 e. ?$0