The circular flow model shows the flow of:
a. money in the economy
b. financial assets in the economy.
c. goods and services in the product market.
d. resources and money in the economy.
e. resources through the resource markets and their allocation in the product market.
d
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If prices in the current year are higher on average than in the base year, real GDP in the current year ________ nominal GDP in the current year.
A. is equal to B. could be greater than or less than C. is greater than D. is less than
When long-run average costs increase as output increases, there are
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) constant marginal costs.
The slope of an indifference curve at all points reflects
a. the terms by which the consumer can trade off goods in the market. b. the relative prices of the two goods. c. the willingness of the consumer to trade one good for another. d. consumer income relative to the price of a good. e. the relative price ratio of the two goods.
Refer to the data provided in Table 11.3 below to answer the following question(s). Table 11.3ProjectTotal InvestmentExpected Rate of Return(dollars) (percentage)New computer for sales staff $250,00011Remodel for distribution center$200,000 9On-site day care center $100,000 5Employee fitness center$50,000 4Refer to Table 11.3. If the interest rate is 14%, Blackstar Drone Manufacturing should
A. fund all of the projects. B. fund only the purchase of new computers for its sales staff. C. fund the remodeling of the distribution center and the on-site day care center. D. not fund any of the projects.