For an economy as a whole,
a. wages must equal profit.
b. consumption must equal income.
c. income must equal expenditure.
d. consumption must equal saving.
c
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If a firm's fixed cost exceeds its total revenue, the firm should stop production by shutting down temporarily
Indicate whether the statement is true or false
The U.S. economy in the 1960s was dominated by a massively expansionary ________ policy that ended up ________
A) monetary, overstimulating the economy B) monetary, being impotent in ending the long stagnation of that decade C) fiscal, overstimulating the economy D) fiscal, being impotent in ending the long stagnation of that decade
An example of a transaction that will be a surplus item on the U.S. balance of payments is
A) a U.S. resident purchasing French wine. B) a French subsidiary's plant in New Jersey purchasing parts from the main plant in Paris. C) a gift of wheat from the U.S. government to India. D) a tourist from Germany buying a ticket to fly from New York to Chicago on American Airlines.
A perfectly elastic long-run supply curve indicates
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) that some input prices change as firms enter and exit the industry.