Which of the following conditions describes a recessionary gap?
A) The short-run equilibrium level of real GDP is above the long-run level of real GDP.
B) The short-run equilibrium level of real GDP is below the long-run level of real GDP.
C) The actual interest rate is above the equilibrium interest rate.
D) The actual interest rate is below the equilibrium interest rate.
B
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A positive economic statement simply describes what is
a. True b. False Indicate whether the statement is true or false
Net exports equal imports minus exports
a. True b. False Indicate whether the statement is true or false
Patents on prescription drugs last
A. from the moment they have been received by the patent office until they hit the market. B. from the moment they have been received by the patent office until they are approved by the FDA. C. forever. D. from the moment they have been received by the patent office and for several more years.
Refer to the information provided in Figure 6.15 below to answer the question that follows.
Figure 6.15Refer to Figure 6.15. The highest indifference curve depicted is the one on which point D lies. Why is Jason not maximizing his utility at point D?
A. He cannot afford point D. B. His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog. C. His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog. D. He is maximizing his utility at point C.