Movement along the aggregate demand curve may be caused by a change in autonomous investment spending
a. True
b. False
Indicate whether the statement is true or false
False
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Geographical conditions such as good climate, availability of natural resources, and fertile soil are examples of:
A) proximate causes of prosperity. B) implicit causes of prosperity. C) fundamental causes of prosperity. D) explicit causes of prosperity.
University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. If there are no subsidies, what is the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced?
a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
When the money market is drawn with the value of money on the vertical axis, if the money supply rises
a. the price level and the value of money rise. b. the price level rises and the value of money falls. c. the price level falls and the value of money rises. d. the price level and the value of money fall.
Refer to Figure 2-2. What is the opportunity cost of one dozen orchids?
A) 0.4 dozen roses B) 2.5 dozen roses C) 7.25 dozen roses D) 16 dozen roses