Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
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_______________ is the practice of hiring people in other countries to do a job that was once done domestically
A) Offshoring B) Onshoring C) Insourcing D) Megasourcing
The above table depicts prices, quantities, and marginal costs faced by the campus bookstore. At the profit-maximizing level of output, what is the total revenue earned by the store?
A. $6 B. $5 C. $15 D. $12
Refer to the above table. The four-firm concentration ratio is
A. 86.5 percent. B. 11.6 percent. C. 13.3 percent. D. 33.3 percent.
Caterpillar has spent $5 million to date on a new plant, and another $2 million is needed to complete the plant. When construction was started, it was projected that production at the new plant would add $12 million to Cat's profit, but new projections show the additional profit will be only $6 million. Assuming the incomplete plant is worthless, should Cat complete the new plant or abandon it?
a. Cat should complete the plant because it would create a net profit of $4 million. b. Cat should complete the plant because it would create a net profit of $1 million. c. Cat should abandon the plant because a $5 million loss is better than a $7 million loss. d. Cat should abandon the plant because it would create a net loss of $1 million..