According to the classical model, investment
A. is influenced by the money illusion at low income levels.
B. is inversely related to the interest rate.
C. is a function of real GDP.
D. is a function of the nominal GDP.
Answer: B
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Marginal utility can fall even as total utility from the consumption of a good is rising.
Answer the following statement true (T) or false (F)
In the figure above
A) moving from point a to point b would require new technology. B) production at point b is efficient whereas production at point a is not efficient. C) some resources must be unemployed at point c. D) opportunity costs are decreasing.
Answer the following questions true (T) or false (F)
1. U.S. farms tend to be diversified rather than specialized. 2. One out of every six jobs in the U.S. economy is tied to the food and fiber sector. 3. The share of the food dollar for food eaten at home is slightly more than 50%.
If the firm operated at optimum efficiency, how much would its output be?
