If the economy is on the steep portion of the AS curve
A. government spending, but not consumption, crowds out planned investment.
B. consumption, but not government spending, crowds out planned investment.
C. there is little crowding out of planned investment.
D. there is almost complete crowding out of planned investment.
Answer: D
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The vertical distance between a firm's total cost (TC) and its total variable cost (TVC) curves
A) decreases as output decreases. B) is equal to the average variable cost, AVC. C) is equal to the total fixed cost, TFC. D) is equal to the marginal cost, MC.
Pete throws leftover bread onto his front lawn because he enjoys watching the pigeons feeding. His neighbor John is not happy about the pigeons, since they leave a mess on his property. This is an example of a nice gesture causing a
a. negative externality b. public good c. positive externaility d. third-party benefit e. free-rider outcome
When Keynesian equilibrium is present,
a. aggregate demand for goods and services will equal the current rate of output. b. business inventories will be increasing. c. full employment must be present. d. the actual rate of unemployment must equal the natural rate of unemployment.
Two goods are substitutes if an increase in the price of one good leads to a decrease in demand for the other.
Answer the following statement true (T) or false (F)