Refer to the diagram for a private closed economy. In this economy, aggregate expenditures:
A. do not change as GDP increases.
B. increase by $2 for every $5 increase in GDP.
C. increase by $2 for every $4 increase in GDP.
D. increase by $2 for every $3 increase in GDP.
D. increase by $2 for every $3 increase in GDP.
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Government spending:
A. tends to increase with increases in the price level. B. tends to increase with decreases in the price level. C. remains generally unaffected by changes in the price level. D. is not a component of aggregate demand.
You have made an investment of $250 that will yield a profit of $30 in one year. If the interest rate is 11.5%, what is your internal rate of return?
A. 10.7% B. 11.8% C. 12.0% D. 12.2%
How do economies of scale result in barriers to entry into oligopoly models?
Which of the following is NOT considered to be an economic resource?
A. an engineer B. a local gas station C. a company truck D. a view of the moon on a clear night