A deficit in the financial account means:
a) the nation has imported more assets than it exported
b) the nation has exported more assets than it imported
c) the nation has invested more than it saved
d) the nation has produced more than it consumed
Ans: a) the nation has imported more assets than it exported
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In a simple economy (without government or foreign trade) where output can be purchased only by consumers or by firms, saving must equal
A) depreciation. B) income. C) consumption. D) investment.
Answer the following statements true (T) or false (F)
1. The average product can be calculated for any unit of input by dividing the total product by the marginal product. 2. If all inputs are increased by 25 percent and output by 35 percent, increasing returns to scale exist. 3. Implicit cost is an opportunity cost of doing business. 4. Opportunity cost and implicit cost are both explicit costs. 5. Marginal cost is the change in total cost that results from producing one less or one more unit of output.
Economists mostly agree that the Great Depression was principally caused by factors that shifted short-run aggregate supply left
a. True b. False Indicate whether the statement is true or false
Can accounting profit be positive while economic profits are negative?
A. No. The two concepts are identical. B. No. Economic profits must always be larger than accounting profits. C. Yes, if total revenue covers opportunity costs but not explicit costs. D. Yes, if total revenue covers explicit costs but not opportunity costs.