If real GDP equals aggregate planned expenditure, then inventories
A) fall below their target levels.
B) rise above their target levels.
C) equal their target levels.
D) are either above or below their target levels depending on whether planned inventories are above or below their target levels.
E) None of the above answers is necessarily correct because there is no relationship between inventories and aggregate planned expenditure.
C
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An example of an "investment" financial intermediary is
A) an insurance company. B) a private pension fund. C) a credit union. D) a mutual fund.
In analyzing the market for a particular good, the most appropriate size of the market to consider
a. is the global market b. is a local market c. is a national market d. is a state-wide market e. depends on the purpose of the analysis
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.
An example of perfect competition is when
a. many sellers compete and none control the market price b. several electronic companies form a cartel c. a seller decides to sell clothing, including shirts and jeans d. a seller is misinformed causing him or her to overprice goods