In the aggregate expenditures diagram, the ________ line relates planned aggregate expenditure to output and the ________ line represents the condition that aggregate expenditure (AE) equals equilibrium output (Y).
A. 45°; aggregate expenditure
B. consumption function; 45°
C. aggregate expenditure; 45°
D. 45°; consumption function
Answer: C
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Gross revenue minus explicit costs equals
A) accounting profit. B) implicit cost. C) opportunity cost. D) economic profit.
A monopsonist:
A. faces a downward-sloping demand curve and by lowering the quantity he sells, he can charge more. B. faces a horizontal demand curve and by raising price, he will lose all of his consumers. C. faces an upward-sloping supply curve and by lowering the quantity he buys, he can pay less. D. faces a downward-sloping supply curve and by increasing the quantity he buys, he can pay less.
Refer to the table below. If the discount rate is 5 percent and the cost of the investment is $42,000, what is the net present value of the investment?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) $44,854.77
B) $2,854.77
C) $3,599.22
D) $42,464.22
As firms find themselves producing closer to their maximum capacities, the most likely outcome would be that the economy's
a. investment curve will shift upward b. investment curve will shift downward c. consumption curve will shift downward d. consumption curve will shift upward e. position along the existing consumption curve will move upward