Refer to Figure 7.1. The diagram above contains ________ cost curves
A) short run
B) intermediate run
C) long run
D) both short run and long run.
A
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If consumption spending is larger than disposable income,
a. saving is positive. b. dissaving occurs. c. saving is exactly zero. d. a depression results. e. this cannot occur.
Identify the impact of an increase in the inventory stock during a year
a. Consumption spending will decrease thereby reducing the GDP. b. The GDP of a country should decrease by the amount of the increase in inventory. c. The capital investment in a country will increase. d. Neither the capital investment nor the GDP will change. e. The GDP of a country should increase by the amount of the increase in inventory.
Assume that Chile can produce one pound of coffee or 40 pillows in an hour, and that the United States can produce one pound of coffee or 20 pillows in an hour,
a. the terms of trade should be between 20 and 40 pillows per pound of coffee, and the United States should produce both coffee and pillows b. the terms of trade should be between 20 and 40 pillows per pound of coffee, and Chile should produce pillows c. the terms of trade should be between 20 and 40 pillows per pound of coffee, and Chile should produce coffee d. the terms of trade should exceed 40 pillows per pound of coffee, and Chile should produce coffee e. no trade will occur, since the United States does not have an absolute advantage in producing either good
When two goods are perfect complements, the indifference curve is
a. a horizontal straight line. b. bowed outward. c. a downward-sloping straight line. d. a right angle.