Assume that in Narnia, planned investment is $80 billion but actual investment is $50 billion. Unplanned inventory investment is
A. -$150 billion.
B. -$30 billion.
C. $65 billion.
D. $150 billion.
Answer: B
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Use the figure below to answer the following question.
What is the amount of producer surplus after the government imposes the excise tax on the market?
A. $162 B. $540 C. $486 D. $180
Which of the following explains why the marginal cost curve has a U shape?
A) Initially, the average cost of production rises, then falls. B) Initially, the marginal product of labor falls, then rises. C) Initially, the marginal product of labor rises, then falls. D) Initially, the average product of labor rises, then falls.
Which of the following is a statement of positive economics?
a. Too much government spending is the biggest problem facing the U.S. economy. b. Creating jobs is the most serious problem facing the U.S. economy. c. Raising taxes provides additional revenue that should be used to finance health care. d. If taxes are over 50 percent of national income, job creation falls.
Unlike a perfectly competitive firm, a monopolistically competitive firm
a. faces a perfectly inelastic demand curve. b. can earn positive economic profit in the short run and in the long run. c. cannot earn positive economic profit even in the short run. d. has a negatively sloped demand curve.