According to the income-expenditure diagram, total production must always equal total
A. inventories.
B. aggregate demand.
C. wages, profit, rents.
D. income.
Answer: D
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Imagine that the best and the brightest professionals of the planet Venus migrate to Earth to work. The upside of this brain drain is
a. the remittances sent home to Venus b. getting rid of snooty Venetians c. not being able to afford the modern machinery that will help the Venetians become more productive d. decreased labor supply on Venus e. increased income inequality on Venus
Which of the following represents the firm's long-run condition for exiting a market?
a. exit if P < MC b. exit if P < FC c. exit if P < ATC d. exit if MR < MC
Which of the following machines has the lowest user cost? Machine A costs $15,000 and depreciates at a rate of 25%, machine B costs $10,000 and depreciates at a rate of 20%, machine C costs $20,000 and depreciates at a rate of 10%, and machine D costs $17,000 and depreciates at a rate of 11%. The expected real interest rate is 0%.
A. Machine A B. Machine B C. Machine C D. Machine D
Members of the top quintile of income earners in every country today:
A. earn disproportionately more than those in the bottom quintile. B. earn disproportionately less than they did 100 years ago. C. earn disproportionately less than those in the middle quintile. D. All of these are true.