What is happening at point C?
a. Consumers are preordering products.
b. Consumers have maxed out their credit.
c. Inventories are being sold off to meet demand.
d. Excess production is being stored in inventories.
d. Excess production is being stored in inventories.
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Moderate exercise is better than none, but excessive exercise is harmful. What is the shape of the graph of health benefits versus hours of exercise per week if health benefits are measured on the vertical axis and exercise is measured on the horizontal axis?
a. a positively sloped straight line b. a negatively sloped straight line c. a vertical straight line d. a U-shaped curve e. a hill-shaped curve
Answer the following statement(s) true (T) or false (F)
1. Microeconomics is the study of the whole economy, including topics of inflation and economic growth. 2. Causation occurs when two events occur together. 3. The fallacy of composition states that even if something is true for an individual, it is not necessarily true for many individuals combined in a group. 4. In the role of scientist, the economist is concerned about the ethics of human behavior.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
A turning point is
A) a change in policy. B) a peak or a trough. C) a boom or a recession. D) a zero deviation from trend.