Aggregate demand is the sum of

A. C + I + G + (X ? IM).
B. C + I + X.
C. C + I + X ? IM.
D. C + I + G.


Answer: A

Economics

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A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If the firm sells each computer for $650, then how many hours a day should the firm employ Pam to maximize its net benefit from her employment?

A. 4 hours B. 3 hours C. 2 hours D. 1 hour

Economics

Relative to a fixed franchise fee, sharing contacts in franchising

a. Can decrease shirking b. Can increase shirking c. Always decreases shirking d. None of the above

Economics

A shortage exists in a market if a. there is an excess supply of the good

b. quantity supplied exceeds quantity demanded. c. the current price is below its equilibrium price. d. All of the above are correct.

Economics

Why do people hold money? Explain the reasons.

What will be an ideal response?

Economics