If a resource can be put to a single use and has no alternative uses then:
a. economic rents are zero.
b. transfer earnings are maximized.
c. total earnings are zero.
d. all earnings are economic rents.
e. all earnings are transfer earnings.
d
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In the Keynesian cross diagram, an increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift up, the equilibrium level of aggregate output to ________, and
the IS curve to shift to the ________, everything else held constant. A) rise; left B) rise; right C) fall; left D) fall; right
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
In defining money according to the transactions approach, you would want to include
A. those assets that are used as a medium of exchange. B. those assets that are used as a standard of deferred payment. C. those assets that are used as a store of value. D. those assets that are used as a unit of account.
In the long run, all firms in a perfectly competitive industry
A. suffer economic losses. B. sell differentiated products to earn economic profits. C. earn economic profits. D. break even.