Suppose output is $35 billion, government purchases are $10 billion, desired consumption is $15 billion, and net exports are $4 billion. Then desired investment equals
A) $2 billion.
B) $4 billion.
C) $6 billion.
D) $8 billion.
C
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A rational consumer should not consume more of a good when:
a. total utility is decreasing. b. marginal utility is diminishing. c. both a and b. d. income is decreasing. e. the price is high.
Answer the following statement(s) true (T) or false (F)
1. Water quality policy recognizes two major categories of water resources -- surface water and groundwater. 2. An aquifer refers to any water body exposed to the atmosphere. 3. Groundwater and surface waters are about equal in volume. 4. The interdependence of all water resources is explained by the hydrologic cycle. 5. Environmental threats to surface water have no connection to groundwater contamination.
Entry into a market by new firms will increase the
a. supply of the good. b. profits of existing firms. c. price of the good. d. marginal cost of producing the good.
A cost that is unavoidable regardless of the actions of a decision maker is called
A. a sunk cost. B. a marginal cost. C. an opportunity cost. D. an incremental cost.