Investment spending is a leakage from the circular flow model
a. True
b. False
Indicate whether the statement is true or false
False
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The slope of a production possibilities frontier measures:
A. the opportunity cost of producing one good in terms of the other good. B. the trade-off in the consumptionof one good versus the other good C. how much of the resources must be used in order to produce one the goods. D. inefficient production of a good.
Maria wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $2.50 per gallon, the car wash costs $2, but if she buys 10 gallons of gasoline, the car wash is free. For Maria, the marginal cost of the tenth gallon of gasoline is
a. zero. b. 50 cents. c. $2.00. d. $2.50.
Vertical equity means that
A. people pay a flat rate. B. equal people are treated unequally. C. people across the income scale are treated fairly with regard to ability to pay. D. equal people are treated equally.
An "increase in the quantity supplied" suggests a
A. leftward shift of the supply curve. B. rightward shift of the supply curve. C. movement down and to the left along the supply curve. D. movement up and to the right along the supply curve.