When total expenditure (TE) exceeds total production (TP), inventory levels rise unexpectedly, which sends a signal to firms that they have overproduced, so they cut back on production
Indicate whether the statement is true or false
True
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In the foreign exchange market where French francs are traded for Japanese yen, a decrease in the interest rate in France is most likely to cause:
a. a decrease in the yen price of the French franc. b. an increase in the interest rate in Japan. c. an increase in the yen price of the French franc. d. an increase in the demand for French francs. e. an increase in the supply of yen.
Economists generally assume that there is a short-run trade-off between
a. output and employment. b. inflation and employment. c. deflation and unemployment. d. inflation and unemployment. e. output and growth.
Refer to the accompanying table. Total utility ________ as additional apples are consumed, but marginal utility ________ with each additional apple consumed.Number of ApplesTotalUtility120235345450545
A. first decreases then increases; decreases B. first increases then decreases; decreases C. first increases then decreases; increases D. first decreases then increases; increases
Figure 10-4
Figure 10-4 shows the industry's supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S2, the firm is
a.
going to shut down.
b.
incurring losses.
c.
earning zero economic profits.
d.
earning economic profit greater than zero.