A profit-maximizing firm should spend an additional dollar on advertising so long as this expenditure results in more than one dollar of
a. additional sales.
b. reduced costs.
c. increased profits.
d. demand.
c
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The median voter model predicts that
A) both candidates in a two-person race will definitely move toward the middle of the political spectrum as the election approaches. B) the candidate (in a two-person race) closer to the middle of the political spectrum (closer to the median voter) on election day will win the election. C) conservatives have a higher probability of winning elections than liberals. D) liberals have a higher probability of winning elections than conservatives. E) voters will often be rationally ignorant of important political issues.
Where Y is GDP, C is consumption, I is investment, G is government purchases, T is net taxes, and there is no international trade, private saving equals:
A. Y - T - C. B. Y -T - G. C. Y - C - I. D. C + I + G - T.
Neoclassical economics and behavioral economics disagree on the following assumptions, except:
A. Rationality of people B. Determinants of prices C. Stability of people's preferences D. Strength of people's willpower
A nation produces three products, A, B, and C. Over two years, the prices of these products change while the quantities produced remain constant, as follows:
Over the period referred to, the nation's nominal GDP increased by 5 percent. The nation's real GDP changed by approximately:
A.
2 percent
B.
3 percent
C.
0 percent
D.
-2 percent