Refer to the information provided in Table 24.4 below to answer the question(s) that follow.
Table 24.4
Refer to Table 24.4. At an output level of $2,000, there is a tendency for output
A. to remain constant.
B. to fall.
C. to either increase or decrease.
D. to increase.
Answer: B
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Due in part to record low interest rates on U.S. Treasury Bonds,
A) investors searching for higher yields bought corporate bonds B) interest rates on corporate bonds rose C) corporations faced higher borrowing costs D) many corporations were at greater risk of defaulting
If Japan has an absolute advantage over the United States in making TVs, then Japan:
A. probably sells TVs to the United States. B. produces more TVs than the United States using the same resources. C. has the ability to produce TVs at a lower opportunity cost than the United States. D. it will have no reason to trade with the US.
A lower interest rate makes more investment projects profitable, meaning that:
a. there is a direct relationship between the rate of interest and the quantity of investment spending. b. there is an inverse relationship between the rate of interest and the quantity of investment spending. c. there is no relationship between the rate of interest and the quantity of investment spending. d. the demand curve for investment spending is horizontal. e. the demand curve for investment spending is vertical.
Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity cost help her make a decision?
What will be an ideal response?