In the classical model,
a. markets do not automatically clear.
b. business demand for loanable fund exceeds business planned investment spending.
c. business demand for loanable fund is equal to business planned investment spending.
d. businesses engage in interest-free borrowing.
e. the government's demand for funds is downward sloping.
C
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Which principle states that as the production of one good expands, the opportunity cost of producing another unit of this good generally increases?
A. Principle of total cost B. Principle of increasing cost C. Principle of opportunity cost D. Principle of increasing marginal utility
Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price."
A) This statement is not true. Revenue will increase as the price of the product increases only if demand is inelastic. B) It is not true. Revenue will increase as the price of the product increases only if demand is elastic. C) This statement is not true. Revenue will decrease as the price of the product increases because quantity demanded will fall. D) The statement is true.
In general, when the price of a variable factor of production increases:
A. the profit-maximizing price falls. B. total cost falls. C. the profit-maximizing level of output falls. D. the profit maximizing level of output rises.
Refer to the information provided in Table 23.10 below to answer the question(s) that follow. Table 23.10
Refer to Table 23.10. The MPC in this economy is
A. 0.5. B. 0.6. C. 0.75. D. 0.8.