An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in aggregate demand.
B. increase in aggregate demand.
C. decrease in short-run aggregate supply.
D. increase in short-run aggregate supply.
A. decrease in aggregate demand.
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A diagram that shows the maximum amount of one type of good that can be produced in an economy, given the production of the other is known as
A) an indifference curve. B) the tradeoff schedule. C) the production possibility frontier. D) the balance of trade.
A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . Ceteris peribus, if the firm continues its production in the same economic environment, the firms accounting profits should
a. increase b. decrease c. stay the same d. does not affect profits
Which of the following is a question that a behavioral economist would seek to answer but a traditional economist would not?
a. How do rational consumers maximize their marginal utility? b. Do real-life consumers actually maximize their marginal utility? c. What are the mathematical conditions for consumer equilibrium? d. How does the marginal utility curve relate to the demand curve?
What are the advantages of setting up a proprietorship or partnership as opposed to a corporation?
What will be an ideal response?