When one observes consumption and investment patterns over time, one finds that:
A. like consumption, investment is fairly stable over time.
B. like consumption, investment is fairly erratic over time.
C. unlike consumption, which is fairly stable over time, investment is subject to erratic fluctuations.
D. unlike consumption, which is subject to erratic fluctuations, investment is fairly stable over time.
Answer: C
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In a small economy in 2016, aggregate expenditure was $800 million while GDP that year was $850 million. Which of the following can explain the difference between aggregate expenditure and GDP that year?
A) Aggregate expenditure is always less than GDP in developed countries. B) Firm investment in inventories was greater than anticipated in 2016. C) Aggregate expenditure is always less than GDP in developing countries. D) Firm investment in inventories was less than anticipated in 2016.
Corn flakes are
A) a rival good because many firms produce them. B) a rival good because if another person wants some corn flakes society has to use additional resources to produce corn flakes for that person. C) a non-rival good because there are only a few firms in the industry. D) a non-rival good because even if another person wants some corn flakes so many corn flakes are produced that no additional resources are used to satisfy this new customer's needs. E) a public good.
Is internally held public debt or externally held public debt less likely to be a problem? Explain
Suppose robotic technology improves the results of abdominal surgery - less time to perform the surgery, faster recovery times, and fewer mistakes. What is the impact of this new technology on the market for abdominal surgery?
a. Demand for robot-assisted surgery will increase, and prices will fall. b. Demand for robot-assisted surgery will increase, and prices will rise. c. Hospitals will be slow to adopt the new technology fearing that it may result in lower prices. d. The demand for surgical assistants will increase. e. Increased demand will result in lower prices.