Economic activity moves from a period of expansion to a ________ and then moves into a period of ________ until it reaches a ________.
A. trough; recession; peak
B. peak, recession; trough
C. peak; expansion; trough
D. trough; expansion; peak
Answer: B
You might also like to view...
The marginal propensity to consume is calculated by
A) dividing the change in income by the change in consumption. B) dividing income by consumption. C) dividing consumption by income. D) dividing the change in consumption by the change in income.
In the long run
A) fixed costs tend to be greater than variable costs. B) variable costs tend to be greater than fixed costs. C) all costs are fixed costs. D) all costs are variable costs.
A cost imposed on people other than the consumers of a good or service is a:
a. price floor. b. negative externality. c. positive externality. d. price externality.
Suppose that a business incurred explicit costs of $1.5 million and implicit costs of $300,000 last year. If the firm sold 4,500 units of its output at $450 per unit, its accounting profits were _______ and its economic profits were _______.
A) $525,000; $225,000 B) $1,725,000; $225,000 C) $525,000; $200,000 D) $1,725,000; $250,000