Refer to Figure 24-1. Ceteris paribus, an increase in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
A
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Refer to Table 2-6. What is Lucy's opportunity cost of making a tricycle?
A) 3/4 of a wagon B) 2 tricycles C) 3 wagons D) 1 1/3 tricycles
Joe runs a pizzeria at a busy place in a city. Around 125 customers visit every day and they each buy 3 pizzas on average. Joe has employed 20 laborers to make pizzas. The productivity of one laborer per day in the pizzeria is equal to _____
a. 6.25 pizzas per worker b. 18.75 pizzas per worker c. 6.67 pizzas per worker d. 41.67 pizzas per worker e. 20.75 pizzas per worker
The law of diminishing return holds that as additional increments of resources are:
a. added to a certain purpose, the marginal benefit from those additional increments will remain flat. b. removed to a certain purpose, the marginal benefit from those additional increments will decline. c. added to a certain purpose, the marginal benefit from those additional increments will incline. d. added to a certain purpose, the marginal benefit from those additional increments will decline.
Refer to the accompanying figure. At point D, the opportunity cost of making milk is:
A. high because productive resources that are better-suited to making movies are being used to make milk. B. high because productive resources that are better-suited to making movies are not being used to make milk. C. low because the economy is specializing in making milk. D. high because the economy is not operating efficiently.