At equilibrium real GDP in a private closed economy:
A. the MPC must equal the APC.
B. the slope of the aggregate expenditures schedule equals the MPS.
C. aggregate expenditures and real GDP are equal.
D. planned saving and consumption are equal.
C. aggregate expenditures and real GDP are equal.
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Refer to Figure 2-5. If the economy is currently producing at point X, what is the opportunity cost of moving to point W?
A) 19 million tons of steel B) 5 million tons of paper C) 9 million tons of paper D) 3 million tons of steel
A market comprised of only two firms is called a
A) competitive market. B) monopoly. C) duopoly. D) monopolistically competitive market.
Which of the following is not an example of scarcity?
a. Only some people can afford to buy a BMW automobile. b. Every individual in society cannot attain the highest standard of living to which he or she might aspire. c. Miranda has more oranges in her orchard than she will ever use. d. Each member of a household cannot get everything he or she wants.
Transactions costs are:
A. often cited as a reason why purchasing power parity doesn't hold. B. the time and energy involved with creating an exchange. C. usually higher when transactions take place internationally. D. All of these statements are true.