An economic model is a
A) realistic version of an economic environment.
B) fictional representation of an entire economy.
C) detailed version of an economic issue.
D) simplified representation of an economic environment.
D
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Consumer goods that are produced, go into inventory, and are not sold during the current period are
a. counted as intermediate goods and so are not included in current period GDP. b. counted in current period GDP only if the firm that produced them sells them to another firm. c. included in current period GDP as inventory investment. d. included in current period GDP as consumption.
As the dollar depreciates, the dollar price of imported goods _________, ultimately shifting the United States AD curve __________________
A) rises; rightward B) rises; leftward C) falls; rightward D) falls; leftward
Competitive firms are able to set price above marginal cost when
A) the markup is less than the cost of going to another store. B) the markup is greater than the cost of going to another store. C) all consumers have full information. D) consumers know what other stores are charging.
When your outcomes depend on another's choices, asking __________________ is the key to good decision making.
A. how will others respond B. what the wants and constraints are of those involved C. what the trade-offs are D. why everyone isn't already doing it