In a closed economy, what remains after paying for consumption and government purchases is
a. national disposable income.
b. national saving.
c. public saving.
d. private saving.
b
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Fred Monroe is a fisherman in the perfectly competitive fish industry in northern Minnesota. After years of experience, he knows that the demand curve for the fish he sells is
a. horizontal b. vertical c. downward sloping d. the same as the industry demand e. upward sloping
A constitutional amendment requiring an annually balanced budget would help stabilize the economy
a. True b. False Indicate whether the statement is true or false
Domestic producers of a good become better off, and domestic consumers of a good become worse off, when a country begins allowing international trade in that good and
a. the country becomes an importer of the good as a result. b. the world price exceeds the domestic price of the good that prevailed before international trade was allowed. c. other countries have a comparative advantage, relative to the country in question, in producing the good. d. total surplus does not change as a result.
A monopolist finds the price-output combination that maximizes its profits by
A) equating total revenue and total cost. B) equating marginal revenue and marginal cost. C) finding the combination for which the difference between marginal revenue and marginal cost is the greatest. D) equating price and marginal cost.