The equilibrium level of income and output is that level of income where the desired spending by all sectors of the economy equals the value of output produced and the income received from production
Indicate whether the statement is true or false
TRUE
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The fallacy of composition states that even if something is true for an individual, it is not necessarily true for many individuals as a group
a. True b. False Indicate whether the statement is true or false
In the graph shown, what change would increase production efficiency?
A. Moving from C to D B. Moving from D to B C. Moving from A to D D. Moving from A to B
Refer to the graph below showing the domestic demand and supply curves for a specific product in a hypothetical nation called Econland. When the world price for this product is $0.50, Econland will:
A. Import 500 units
B. Import 100 units
C. Import 400 units
D. Export 100 units
The town of Isle is on a small island connected to Big City by a single bridge. Most of the residents of Isle work in Big City. As a result, the bridge becomes very congested for 2 hours each day at the typical morning and evening commute times. Which of the following policies considered by the mayor of Isle would likely be most effective in alleviating the congestion?
a. A fixed toll for the bridge payable by every vehicle crossing the bridge at all days and times. b. A variable toll for the bridge payable only by vehicles crossing the bridge during the congested commute times. c. Any vehicle crossing the bridge at any time must have a sticker paid for with a one-time fee of $25. d. A press conference in which the mayor requests that people try to cross the bridge earlier or later than the typical commute times.