If real Gross Domestic Product (GDP) is at an equilibrium level in a closed economy,
A. unplanned inventory accumulation will equal planned inventory accumulation.
B. real GDP equals the sum of consumption and investment minus government purchases.
C. real GDP equals the sum of consumption, investment, and government purchases.
D. saving will be less than planned investment.
Answer: C
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Maxine and Deborah both got hair extensions, costing each of them $300. Maxine's hair was done perfectly. She enjoyed the new look. The job on Deborah's hair was all botched u
A) Deborah did not incur a sunk cost. B) Maxine did not incur a sunk cost. C) Both Maxine and Deborah each incurred a $300 sunk cost. D) Only the hairdresser incurred a sunk cost.
According to the authors of your text, a politician's interest in getting reelected
A) expands the politician's time horizon. B) leads the politician to concentrate on policies capable of generating short-run benefits. C) further encourages the politician to conform more to acting in the public interest. D) is based chiefly on selfish interest.
An indication that Insurance companies anticipate adverse selection is
a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
The physical or perceived differences between goods in a market that makes them close, but not perfect, substitutes are called
a. complementary goods b. substitute goods c. natural differentiation d. oligopolistic differentiation e. product differentiation