Ben is exhausting his money income consuming products A and B in such quantities that MU a /P a = 5 and MU b /P b = 8. Ben should purchase:
A. more of A and less of B.
B. more of B and less of A.
C. more of both A and B.
D. less of both A and B.
Answer: B
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Which of the following will restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) A reduction in the investment in the economy B) A reduction in the demand for goods and services in the economy C) A decrease the real exchange rate D) An increase in the interest rate
Disposable income is what households have to spend or to save.
Answer the following statement true (T) or false (F)
Refer to the above figure. Which panel represents the long-run supply curve for an increasing-cost industry?
A. Panel A B. Panel B C. Panel C D. Panel D
Cyrus McCormick and Eli Whitney were important in the technology of
A. steel. B. automobiles. C. agriculture. D. oil.