The slope of a production possibilities curve is based on opportunity cost.
a. true
b. false
Ans: a. true
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If unplanned inventory changes are positive, what is the relationship between aggregate planned expenditure and real GDP?
What will be an ideal response?
In the circular flow diagram, firms get their ability to pay for the costs of production from the:
A. Revenues they receive for their products B. Resources they acquire in the resource markets C. Incomes they earn for their resources D. Goods and services they get in the product markets
Investment is
A. a negative function of real GDP. B. a positive function of real GDP. C. a positive function of interest rates. D. autonomous with respect to real GDP.
Natural monopolies fail to minimize
A. Marginal revenue. B. Average variable cost. C. Average total cost. D. Marginal cost.