As the economy recovers from a recession, economists expect its:
A. Imports to grow, and therefore its trade deficit would also grow
B. Exports to grow, and therefore its trade deficit would shrink
C. Imports and exports to grow at roughly the same rate, so its trade deficit will stay constant
D. Imports and exports to start declining, therefore its trade deficit will also decline a little bit
A. Imports to grow, and therefore its trade deficit would also grow
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The firm's overriding objective is to
A) earn a normal profit. B) maximize normal profit. C) maximize economic profit. D) maximize total revenue. E) avoid an economic loss.
The market system is characterized by:
A. extensive government constraints on individual behavior. B. government control of all production decisions. C. government rationing of all goods and services. D. private ownership of the means of production.
The four components of aggregate expenditure are:
A. consumption, investment, government purchases, and net exports B. consumption, investment, government transfers, and net interest. C. spending on domestic goods, domestic services, foreign goods, and foreign services. D. spending on durable goods, inventory investment, government debt, and net exports.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 96 ? 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 6Q1 and MC2 = 3Q2. How much output should be produced in plant 2 in order to maximize profits?
A. 4 B. 1 C. 2 D. 3