All of the following will cause an outward shift of the investment function EXCEPT
A) innovation that improves production efficiency at every level of output.
B) a reduction in business taxes.
C) business people becoming optimistic about the future.
D) a decrease in the interest rate.
D
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Positive economic profits in a perfectly competitive market imply that:
A) producers are earning more than their opportunity cost. B) existing firms are likely to leave the market. C) the cost of production is equalized across producers. D) government intervention is required to stabilize the market.
Cost-push inflation can be shown on an aggregate supply aggregate demand diagram as
A) a rightward shift of the aggregate supply curve with no change in aggregate demand. B) a rightward shift in the aggregate demand curve with no change in aggregate supply. C) a leftward shift in the aggregate demand curve with no change in aggregate supply. D) a leftward shift in the aggregate supply curve with no change in aggregate demand.
The marginal revenue product gives
A) the change in total product for an additional unit of a variable input. B) the amount that other inputs must increase by when labor increase by one unit. C) the additions to total cost when an additional unit of a variable input is hired. D) the additional revenue obtained when an additional unit of a variable input is hired.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.