When the expenditure schedule is too low, the result is a(n)
A. unemployment surplus.
B. inflationary gap.
C. recessionary gap.
D. budgetary gap.
Answer: C
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Because of scarcity, every economic decision involves
A. a trade-off. B. a free good. C. a trade-in. D. an increasing cost. E. a money payment.
Suppose ABC Aluminum Inc owns 80% of the world's bauxite, a mineral used in the production of aluminum. Which of the following reasons describes the fundamental barrier to entry for the aluminum industry?
a. monopoly resources b. government regulation c. the production process d. Both a and b are correct.
The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis
a. is positive and gets steeper as capital per worker rises. b. is positive and gets flatter as capital per worker rises. c. is negative and gets steeper as capital per worker rises. d. is negative and gets flatter as capital per worker rises.
"As the price of apples goes up, the demand for apples goes down." The author of this statement
A) implies that price and demand are unrelated. B) uses the word "demand" when he should use the word "supply." C) uses the word "demand" when he should use the words "quantity demanded." D) implies that demand and price have a direct relationship.