In Figure 4-6 above, suppose we are initially at point 2. A reduction in government spending causes income to change by ________ and the interest rate to change by ________ than would be the case in the Chapter 3 model
A) more, more
B) more, less
C) less, more
D) less, less
C
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If there is a shortage of gasoline, then
A) the purchase plans of buyers are not being fully achieved. B) buyers will tend to compete amongst themselves for more gasoline. C) the price of gasoline will tend to rise. D) all the above are true. E) none of the above is true.
Suppose an agent must pay the full marginal cost for an item but splits the marginal revenue with the principal. As a result,
A) joint profit is maximized. B) joint profit is not maximized. C) the agent will not enter into such a contract. D) the agent wishes to sell as many items as he can.
An economy's income is the same as its expenditure because every transaction has a buyer and a seller
a. True b. False Indicate whether the statement is true or false
Every point on a ________ represents the minimum cost at which the associated output level can be produced when the scale of plant can be changed.
A. marginal cost curve B. long-run demand curve C. U-shaped long-run average cost curve D. long-run variable cost curve