A problem with using the price of a product similar to the intermediate good sold on the market is
a. the market price includes a margin above marginal cost
b. the product on the market may include costly features your downstream division does not use
c. the product on the market may be cheap because it is not as high of quality as your downstream division uses
d. all of the above
c
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In Figure 3-6 above, income and actual expenditures are equal at
A) point J. B) point K. C) point L. D) all of the above.
The equation of exchange is an ________ while the quantity theory of money is a theory that ________.
A. accounting identity; assumes velocity is held constant B. accounting theory; economists use to explain changes in real Gross Domestic Product (GDP) C. accounting identity; assumes the money supply is constant D. accounting theory; assumes the price level is constant
Which of the following is consistent with farming as a competitive market?
A. Zero economic profit in the long run. B. Negative economic profit in the long run. C. A large percentage of costs are for advertising. D. Positive economic profit in the long run.
Referring to the Economic Stimulus Act of 2008, the expansionary effect of the government stimulus was overwhelmed by the continuing deterioration in credit market conditions
Everything else held constant and using the ISLM model, the net effect would cause the ________ curve to ________ and output will ________. A) IS; shift left; decrease B) IS; shift right; increase C) LM; shift right; increase D) LM shift left; decrease