In the TE-TP framework, total production
A) always equals total expenditures.
B) equals Real GDP.
C) is always greater than total expenditures.
D) is always less than total expenditures.
B
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Refer to Goods X and Y. Suppose the consumer is spending all of his income buying some of both goods. If the marginal value of X is greater than the relative price of X, how can the consumer improve his level of satisfaction?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. By purchasing more of both goods. b. By purchasing more of good X and less of good Y. c. By purchasing more of good Y and less of good X. d. The consumer cannot improve his level of satisfaction because he is at the optimum.
In the long run, a perfectly competitive firm makes zero economic profit. What incentive does the firm have to stay in business if it is making zero economic profit?
What will be an ideal response?
Suppose the U.S. Congress is successful in enacting tariffs large enough to eliminate the current account deficit. What would happen to the level of domestic investment?
A) It would rise and exceed national saving. B) It would fall to a level equal to national saving. C) It would not change. D) It would rise to a level equal to net foreign investment.
Marsha Murphy complained, "Many jobs that are filled mostly by men offer higher wages than most jobs that are typically filled by women. In many cases, the jobs men have require the same education and skills as the jobs women have
This is clearly unfair. Women should be paid the same wages as men are paid for jobs that are equivalent in terms of their qualifications." Which of the following statements describes Marsha's position? A) Marsha believes that employers are reluctant to hire women for certain jobs because of cognitive dissonance. B) Marsha believes employers assume that men and women have different job preferences. C) Marsha believes that women's wages should include a compensating differential. D) Marsha endorses a concept called comparable worth.