In the above figure, if the economy is at point A, which of the following is TRUE?
A) There is a recessionary gap.
B) There is an inflationary gap.
C) Point A is the long-run equilibrium point.
D) None of the above answers are correct.
B
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When the cost of producing a product is paid, at least in part, by someone other than the producer, the cost is referred to as
A) an external cost. B) an external profit. C) an external benefit. D) an external/internal cost. E) a public cost.
A monopsonist faces a constant elasticity of labor supply of 1.5. If the monopsonist pays $15 per hour, its marginal expenditure equals
A) $15. B) $25. C) $7. D) 25%.
According to Keynes, what households plan to save
A) always equals what firms plan to invest. B) sometimes equals what firms plan to invest. C) is always greater than what firms plan to invest. D) is always less than what firms plan to invest.
Unlimited liability is a distinct advantage of the proprietorship
a. True b. False Indicate whether the statement is true or false