If consumption spending is greater than national income,
a. saving is positive
b. dissaving occurs
c. saving is exactly zero
d. a depression results
e. investment is greater than saving
B
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Which of the following is TRUE about a perfect price discriminating monopolist?
A) Price is greater than marginal revenue. B) Price always exceeds marginal cost. C) The firm makes zero economic profit. D) The firm produces the efficient level of output.
A cold spell in Florida extensively reduced the orange crop, and as a result, California oranges commanded a higher price. Which of the following statements best explains the situation?
a. The supply of Florida oranges fell, causing the supply of California oranges to increase as well as their price. b. The supply of Florida oranges fell, causing the supply of California oranges to decrease and their price to increase. c. The supply of Florida oranges fell, causing their price to increase and the demand for California oranges to increase. d. The demand for Florida oranges was reduced by the freeze, causing an increase in the price of California oranges and a greater demand for them.
The school of thought that emphasizes the natural tendency for an economy to move toward equilibrium full employment is known as the:
a. Keynesian school. b. supply-side school. c. rational expectations school. d. classical school.
In Polynomia, real GDP increased by 8% and the population increased by 3% in 2018.. In 2018, Polynomia experienced
A. an economic decline. B. economic growth and an increase in living standards. C. no economic growth, but an increase in living standards. D. economic growth, but not an increase in living standards.