If intended investment is $2,500 billion, and actual investment is $2,000 billion, then we know that
a. saving is –$500 billion
b. consumption is –$500 billion
c. unwanted inventory is $2,500 billion
d. unwanted inventory is $500 billion
e. inventory will fall by $500 billion
E
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The resource income earned by those who supply ________ is called wages
A) labor B) natural resources C) entrepreneurship D) capital
To an economist, theory can be thought of as
a. abstraction for the sake of argument. b. one person's opinion, which is just as good as another's. c. another term for the description of a situation. d. beliefs which cannot necessarily be verified. e. explanation of mechanisms behind observed phenomena.
If the velocity of money is 5, then each dollar must have exchanged hands on average 5 times per ______.
a. day b. week c. month d. year
Which of the following best explains why airlines often cut their ticket prices at the last-minute in order to fill the remaining empty seats on their flights?
A) Fixed costs in the airline industry are very large, but the marginal cost of flying one more passenger is very low. B) Airlines receive a subsidy from the government for each flight that is fully booked and departs on time. C) The Federal Aviation Administration ranks each airline based on the percentage of flights that are fully booked. These rankings affect the decisions of firms to use a particular airline to fly their employees to business meetings. D) Cutting prices makes the airlines more popular with their customers, who may fly with the same airline in the future as the result of buying low-price tickets.