If by chance, the level of investment that producers intend to make equals what consumers actually save out of their income, it follows that what producers intend to produce for consumption is precisely what consumers intend to consume. This set of equalities is shown as
a. Ci = Y – Ii
b. Ci = Y – S
c. Y = C + S
d. Ii = S
e. I = Y
D
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Which of the following is a reason why individual firms under perfect competition would not find it gainful to advertise their product?
A. The quantity of the product demanded is very large. B. Firms produce a homogeneous product. C. Firms do not make long-run profits. D. The market demand curve cannot be increased.
According to your textbook, markets tend to "clear" due to
A) the use of threat and coercion. B) the competitive bidding process. C) the intervention of expert economists. D) a well-managed national economic plan.
When the minimum marginal penalty for tax evasion is greater than the maximum marginal tax rate, theory suggests that tax evasion will be
A. greater than 1. B. ?. C. 0. D. 100.
Economic fluctuations in the United States have been less extreme since the 1950s
a. True b. False Indicate whether the statement is true or false