Refer to Figure 11-16. The figure above illustrates a series of isoquants. Which of the following statements is true?
A) Points z and y represent the same output; this output is produced with more capital at z than at y.
B) Point z represents a greater output than point x or point y.
C) Points x, z, and y all represent the same output.
D) Point x and y represent the same output but the cost of production at y is greater than the cost of production at x.
B
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The four components of aggregate expenditures are:
A. consumption, investment, government spending, and net exports. B. consumption, interest payments, government spending, and net exports. C. consumption, imports, government spending, and net exports. D. consumer durables, investment, government spending, and net exports.
Equilibrium GDP will not exist where output exceeds aggregate demand because businesses will notice that
A. their profits are positive. B. inventory stocks are building up. C. inventory stocks are being depleted. D. their level of depreciation is rising.
The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.
There are many reasons why monopolies arise. Which of these is not one of them?