When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of
A) using assumptions to simplify. B) thinking at the margin.
C) comparative advantage. D) diminishing returns.
C
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In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C
A. unplanned inventories increase. B. changes in inventories cannot be determined. C. unplanned inventories decrease. D. unused industrial capacity exists in the economy.
Refer to the diagrams that show identical marginal utility from income curves for Singer and Catalano. If an initial distribution of $15,000 to Singer and $5,000 to Catalano is altered in favor of greater equality, it may be argued that:
A. the combined total utility of the two consumers will decline because Catalano has a greater
capacity to derive utility from income than does Singer.
B. incentives to produce will be weakened and total income will decrease.
C. incentives to produce will be enhanced and total income will increase.
D. the combined total utility of the two consumers will decline because Singer has a greater
capacity to derive utility from income than does Catalano.
Gross domestic product (GDP) equals the ________ of final ________ produced within a country during a given period of time.
A. market value; goods and services B. quantity; goods and services C. market value; goods D. market value; services
Everything else equal, how will a decrease in the interest rate in Mexico affect Mexico's GDP?
What will be an ideal response?