Economic resources used in the production process are called:
A) free gifts of the natural environment.
B) factors of production.
C) consumer items.
D) money capital.
Ans: B) factors of production.
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All of the following are automatic stabilizers EXCEPT
A) the federal income tax system. B) welfare payments. C) discretionary tax cuts. D) unemployment compensation.
Duties of the Council of Economic Advisers include
a. advising the president and writing the annual Economic Report of the President. b. implementing the president's tax policies. c. tracking the behavior of the nation's money supply. d. All of the above are correct.
The slope of the budget line is determined only by the prices of the commodities purchased.
Answer the following statement true (T) or false (F)
Assume an electric company has spent $3 billion on a nuclear power plant. It's producing at a price per kilowatt hour that is above its average variable cost. However, after 10 years the price remains below average total cost
If there is no expectation that price will equal or rise above the average total cost what would you expect this company to do with its nuclear power plant? Why is the $3 billion not part of the decision? Explain.